BALLABHDAS ISHWARDAS Vs. COMMR OF INC TAX

JUDGEMENT

(1.) The assessee is a firm registered under the Indian I.T. Act, 1922. It carries on business of railway catering contracts. The reference relates to the assessment year 1955-56, the previous year being calendar year 1954. The assessment was completed on the 26th February, 1960, on a total income of Rs. 2,32,158 and the demand notice was served on the assessee-firm on 7th March, 1960. The assessee filed an appeal before the AAC challenging certain disallowances. The appeal was allowed partly. Thereafter, there was a further appeal before the Tribunal. Certain contentions about disallowances were made there with which we are not concerned in this reference.

(2.) It was submitted at the time of the hearing of the appeal before the Tribunal that the assessee-firm consisted of two partners, Ballabhdas Agarwal and Ishwardas Agarwal. For the assessment year 1955-56, the two partners had duly submitted their returns showing an estimate of share income from the assessee-firm as the assessments on the partners had been completed on the 14th November, 1959. Therefore it appears that before the assessment on the firm, the assessments on the partners comprising the firm had been completed.

(3.) In the premises, it was submitted that the ITO was incompetent to make the assessment on a firm after having chosen to make an assessment on the partners individually. This ground had not originally been taken in the grounds of appeal and the assessee submitted that he should be permitted to raise ah additional ground of appeal to the following effect: