NARAINDAS Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS order will also govern the disposal of Misc. Petitions Nos. 47, 48 and 49, all of 1962.

(2.) THESE four petitions under Articles 226 and 227 of the Constitution of India are by persons who are partners in two registered firms engaged in the business of bidi manufacturing under the name and style of M/s. Udhoji Shri Kishandass of Satna and M/s. Ramadhin Bhagwatdin of Sehora. The prayer of each of the petitioners is for the issue of a writ of certiorari for quashing an order of rectification of assessment under Section 35 of the Indian Income-tax Act, 1922, passed against him by the Income-tax Officer, Satna, on 31st December 1960.

(3.) IN our judgment, there is no force in the contention that the INcome-tax Officer had no jurisdiction to rectify the assessments against the petitioners after the completion of the assessment of the firm M/s. Ramadhin Bhagwatdin on 16th March 1960. It is quite true that there was no mistake apparent from the record of the assessments of the petitioners and there was also no mistake in the record of assessment of the firm M/s. Udhoji Shri Kishandass and in the computation of the proportionate share of profits of each of the petitioners in that firm. If there was no mistake apparent from the record of assessments of the petitioners, then clearly Section 35(1) could not be resorted to. But if there had been a mistake in the assessment of the firm M/s. Udhoji Shri Kishandas and in the computation of the proportionate share of profits of the petitioners in that firm, it would have been open to the INcome-tax Officer to rectify the assessment under Sub-section (5) of Section 35. Again, if at the time the assessments were made against the individual partners by including their share of profits in the firm M/s. Udhoji Shri Kishandass, the assessment of the other firm had not been completed, Sub-section (5) could be invoked for rectifying the assessment of the partners by including the amount of their shares of profits in the firm M/s. Ramadhin Bhagwatdin. This is clear from the very plain language of Sub-section (5) and the object with which that clause was incorporated in the Act by the INcome-tax (Amendment) Act, 1953 (Act No. 25 of 1953). Sub-section (5) of Section 35 is as follows: