TATAWARTHY NARAYANA MURTY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS reference arises under section 66(1) of the Indian Income-tax Act, 1922. Penalty was levied against a Hindu undivided family of which the petitioner was a member. According to the petitioner after disruption of the joint family status, he preferred the appeal to the Income-tax Appellate Tribunal questioning the levy of penalty. The Appellate Tribunal held as follows :

(2.) ACCORDING to the assessee, the Hindu undivided family, which is the assessee, had become disrupted on October 31, 1957, whereas the penalty was levied on November 5, 1957. For this it relies upon the decision of the Income-tax Officer in regard to the assessees application under section 25A. Therefore, according to the assessee, the legal entity on which the penalty has been levied had ceased to exist on the date of levy of penalty. There is no question of any legal entity questioning the validity or the quantum of the penalty levied in any appeal against the order in question since the order is illegal, having been levied on a non-existing legal entity. In view of the above, we consider that there can be no legal entity in existence to come up in appeal to the Tribunal. Hence this appeal is incompetent and, therefore, dismissed."

(3.) THE learned judge further added :