COMMISSIONER OF INCOME TAX Vs. SUDARSHAN AND COMPANY

JUDGEMENT

(1.) BY this application under S. 256(1) of the INCOME TAX ACT, 1961 (hereinafter referred to as "the Act"), the Tribunal, Indore Bench, Indore, 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 is a registered firm. One of the partners of the assessee -firm died on October 30, 1976, and thereafter, a new partnership deed was executed on November 25, 1976. The assessee filed two separate returns and contended before the ITO that two assessments should be framed for the two separate periods. The ITO, however, made one assessment for both the periods. Aggrieved by that order, the assessee preferred an appeal before the AAC which was dismissed Aggrieved by that order, the assessee preferred a further appeal before the Tribunal. The Tribunal held that the assessing authority was not justified in framing a single assessment for the two separate periods. The Tribunal accordingly set aside the order passed by the AAC and directed that two separate assessments be framed with regard to the two periods. Aggrieved by this order, the Revenue sought reference and it is at the instance of the Revenue that the aforesaid question of law has been referred to this Court for its opinion.

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