HANSRAJ DHINGRA Vs. UNION OF INDIA

JUDGEMENT

(1.) An order of assessment dated February 1, 1970, made by the Income-tax Officer, "A" Ward, SSC-I/Cal , under Section 143(3)/155 of the Income-tax Act, 1961, and the consequent demand dated March 12, 1970, issued under Section 156 thereof are the subject-matter of challenge along with an order dated July 20, 1971, passed by the Additional Commissioner rejecting a revision petition under Section 264 of the Act against the said order of assessment. The facts are not in dispute and may briefly be set out as hereunder.

(2.) Petitioner filed his return of income in respect of the assessment year 1963-64 on June 27, 1963. In this return he showed his total income to be Rs. 24,396, the only source of his income being said to be the share of profit received by him from Messrs. India Trading Corporation, a partnership firm of which the petitioner was a partner. On August 3, 1963, the Income-tax Officer made a provisional assessment under Section 141 of the Act and issued a demand notice on such assessment. The records of the assessment proceeding show that the assessee appeared even thereafter on a notice under Section 143(2), but no regular assessment was made under Section 143(3).

(3.) In the meantime the partnership firm as aforesaid filed its return in respect of the assessment year 1963-64. It also filed an application for registration under Section 184 of the Act. The application for registration was rejected and on March 28, 1968, the firm was assessed as an association of persons. The firm preferred appeals both against the assessment as also against the order refusing registration. In October, 1969, the firm's appeal against the refusal of registration succeeded and grant of registration in favour of the firm was directed. The firm's appeal against the assessment also succeeded in part. Consequent thereto, on January 9, 1970, the Income-tax Officer made an order apportioning the total income of the said firm between the partners thereof.