COMMISSIONER OF INCOME TAX Vs. SURINDER SINGH ATWAL

JUDGEMENT

(1.) Two questions of law have been referred by the Tribunal Under Section 256(1) of the I.T. Act, 1961, to this court for an answer:

(2.) The respondent (hereinafter referred to as "the assessee") is an individual. The assessment year is 1958-59 and the relevant accounting year is the financial year ended on 31st March, 1958. In the accounting year relevant to the assessment year under reference the assessee was a partner of M/s. G. S. Atwal & Co. (Asansol), Contractors. Apart from share of income from the said firm, the assessee had income from his independent contract business.

(3.) The original assessment for the year under reference was completed on September 29, 1962, on a loss of Rs. 13,485, comprising of income from contract business at Rs. 9,000 and share of loss from the said firm as per allocation at Rs. 22,485. Subsequently, the assessment of the said firm was revised as the original assessment was set aside in appeal by the AAC. On the fresh assessment realised on the said firm, the assessee's share of income from it amounted to Rs. 3,83,598. This led the ITO to revise the assessee's assessment for the year under reference in accordance with the provisions of Section 155 read with Section 154 of the 1961 Act. This order was passed on August 12, 1968.