LAKSHMI NARAYANA G Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) These four writ petitions raise a common question and were heard as a batch.

(2.) The controversy in all these cases relates to the assessment proceedings under the Income-tax Act for the assessment year 1979-80. All the petitioners had filed their respective returns for the said assessment year in which they had claimed that there was a partial partition of the family and had requested for an order under section 171 of the Act also. it is to be noticed that the partial partitions in all these cases are said to have taken place between January 1, 1979, and March 31, 1979, during the relevant previous year for the assessment year 1979-80. In the case of two petitioners, after enquiry, an order under section 171 was also passed and assessment completed, while in the case of two others, the assessment was yet to be completed. However, after coming into fore of the Finance (No. 2) Act of 1980, the income-tax officer decided to ignore the order passed under section 171 and also to ignore the partial partition in these cases. The prayer in these writ petitions is for a declaration that the amendment inserting sub-section (9) to section 171 of the Income-tax Act, 1961, by the Finance (No. 2) Act of 1980, giving retrospective effect from January 1, 1979 (sic) is void and illegal.

(3.) For all these cases, single counter-affidavits have been filed on behalf of the respondents, i.e., by the Income-tax Officer (Judicial), Commissioner of Income-tax, Hyderabad, and under Secretary, Ministry of Finance, Government of India.