COMMISSIONER OF INCOME TAX Vs. BANDO AND CO

JUDGEMENT

(1.) THE Tribunal has referred the following three questions of law to this Court under s. 256(2) of the IT Act, 1961:

(2.) THE assessment year involved in this reference is the assessment year 1962-63. The relevant facts, as stated in the statement of case by the Tribunal, are as follows : The assessee filed its return of income in the status of a firm. Along with that return, it also submitted an application in Form No. 11 seeking registration. The ITO, by a separate order, refused to grant registration and treated the firm as an unregistered one. The AAC confirmed the order of the ITO. The assessee came on appeal to the Tribunal. It was claimed before the Tribunal that in all the earlier as well as the subsequent years the Department had accepted the position that the correct status of the assessee was of an "association of persons".

(3.) THE answer to question No. 2 follows logically from the answer to question No. 1. If the assessee has been assessed in the status of an "association of persons" and if such assessment is upheld, then by virtue of s.9 of the Indian IT Act, 1922, the shares of the individuals forming the association being definite and ascertainable, a member of the association has to be assessed individually. There is no reason why the rental income should not be assessed separately.