PRAKASH B SULTANE Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) By this reference, the following question of law has been referred for opinion of this Court u/s. 256(1) of the Income Tax, 1961, by the Tribunal at the instance of the assessee Dr.Prakash Sultane, in R.A. Nos. 614 & 615(PN) of 1986 arising out of ITA Nos. 1603 & 1604 (PN) of 1985 for the assessment years 1982-83 and 1981-82.

(2.) The factual matrix giving rise to the aforesaid question of law is as follows:-

(3.) The assessee being unmarried was assessed by the ITO in the status of individual in respect of both, his professional income from medical practice as also income from the assets received by him on partition from the HUF. After the assessee got married on 22nd January, 1980, the assessee claimed before the ITO that he should now be assessed in the status of individual in respect of his professional income only and as regards, the income from assets received on partition from the HUF, he should be assessed in the status of HUF consisting of himself and his wife. The assessee, accordingly, filed two returns one in the status of individual in respect of his professional income and other in the status of HUF in respect of the income from assets received on partition from the HUF. The assessee before the ITO placed reliance on the judgement of the Allahabad High Court in the case of Prem Kumar V/s. Commissioner of Income-Tax, 1980 121 ITR 347 wherein the Court held "that the share belonging to the unmarried co-parcener does not lose its character and therefore, on the marriage of the unmarried co-parcener HUF comes into existence and the income is assessable in the hands of such HUF." The Assessee also placed reliance on judgment N.V. Narendranath V/s. Commissioner of Income-Tax, 1969 74 ITR 190 and Surjit Lal Chhabda V/s. Commissioner of Income-Tax, 1975 101 ITR 776 Bombay.