COMMISSIONER OF INCOME TAX Vs. BALCHAND MALVIYA

JUDGEMENT

(1.) BY this reference under S. 256(1) of the INCOME TAX ACT, 1961 (hereinafter referred to as the Act), the Tribunal, Jabalpur Bench, Jabalpur has referred the following question of law to this Court for its opinion:

(2.) THE material facts, giving rise to this reference briefly are as follows : The assessee was assessed to income -tax under the provisions of the Indian IT Act, 1922 (hereinafter referred to as the 1922 Act) in the status of an HUF for the asst. yrs. 1953 -54, 1954 -55, 1955 -56 and 1956 -57. It was urged before the ITO on behalf of the assessee that a partition in the joint family had taken place but that claim put forward by the assessee under S. 25A of the 1922 Act was rejected by the ITO. Aggrieved by the order passed by the ITO the assessee preferred an appeal before the AAC. The AAC set aside the order passed by the ITO and directed the ITO to make the assessment in the manner provided by sub -s. (2) of S. 25A of the 1922 Act. Thereafter the ITO passed orders on 8th July, 1974 for the assessment years in question. In pursuance of the assessment orders passed on 8th July, 1974 demand notices were issued by the ITO to all the members of the HUF, who filed a petition in this Court which was registered as Misc. Petition No. 15 of 1975 praying that the assessment orders passed by the ITO be quashed and the demand notices which were issued in pursuance of these orders be also quashed. During the pendency of that petition, the Karta of the HUF have also filed appeals against the assessment orders passed on 8th July, 1974 by the ITO and the order dt. 17th Jan., 1979, passed by the AAC the appeals were allowed. This fact was brought to the notice of this Court when Misc. Petition No. 15 of 1975 was being heard. A Division Bench of this Court by its order dt. 10th July, 1980 while disposing of the petition held as follows:

(3.) FOR all these reasons, our answer to question referred to this Court is in the affirmative and against the Revenue. In the circumstances of this case, parties shall bear their own costs of this reference.