RAMCHAND MOOLCHAND Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this reference under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Indore Bench, has referred the following questions of law to this court for its opinion :

(2.) THE material facts giving rise to this reference, briefly, are as follows :

(3.) AS regards question No. 2, the Tribunal held that the assessments made on the partners were protective in view of the noting made in the assessment order passed in the case of two out of the four partners that it was subject to rectification under Section 155 of the Act. In view of the decision of the Supreme Court in CIT v. Murlidhar Jhawar and Purna Ginning and Pressing Factory [1966] 60 ITR 95, it cannot be held that the Income-tax Officer had not exercised his option. The Tribunal, in our opinion, erred in holding that the Income-tax Officer, having assessed two of the partners on their share income, could also assess the firm as an unregistered firm.