NATHULAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an application under Section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act").

(2.) THE material facts giving rise to this application, briefly, are as follows : Nathulal Hiralal was assessed in the status of an individual up to the assessment year 1980-81. In the accounting year 1979-80, the assessee and his adopted son effected a partition of the joint family property. Before Nathulal could file a return for the assessment year 1981-82, he expired on April 9, 1981, and his son, Omprakash, filed a return for the assessment year 1981-82 in the status of Hindu undivided family and also claimed recognition of the complete partition alleged to have taken place on November 7, 1980. THE Income-tax Officer, after making necessary enquiry, passed an order of assessment under Section 143(3) of the Act in the status of the assessee as Hindu undivided family. THE Income-tax Officer also passed a separate order under Section 171 of the Act recognising complete partition of the Hindu undivided family. THE Commissioner of Income-tax, exercising powers of revision under Section 263 of the Act, issued a notice to the applicant calling upon him to show cause why the order passed by the Income-tax Officer under Section 171 of the Act should not be set aside as being prejudicial to the interests of the Revenue. THE applicant showed cause, but the Commissioner, by the order dated September 21, 1984, set aside the order passed by the Income-tax Officer under Section 171 of the Act and directed him to pass a fresh order after making an enquiry as to whether the status claimed for the first time for the assessment year 1981-82 was correctly claimed as Hindu undivided family. Aggrieved by the order passed by the Commissioner, the applicant preferred an appeal before the Tribunal. That appeal was, however, dismissed. Aggrieved by the order passed by the Tribunal, the applicant sought reference, but as the application made in that behalf was rejected, the applicant has made this application.