COMMISSIONER OF INCOME TAX Vs. RENUKA GANGULY

JUDGEMENT

(1.) By this reference application, the Tribunal has referred to the following question for our opinion :

(2.) The assessees, Smt. Renuka Ganguly and others, were carrying on business in the name and style of "National Clinical and Research and Laboratory". It was a proprietary concern of the late Dr. A. N. Ganguly who died on May 26, 1973, intestate leaving behind him the second wife, Smt, Renuka Ganguly, one unmarried daughter and one minor son from the above second wife and two married daughters from the deceased first wife. A search was made on September 18, 1976, at the above clinic as well "as at the residence of the above persons. Some cash and books of account were seized by the Department. On an examination of the seized books, it was revealed that the income has escaped assessment. Therefore, the assessments were reopened under Section 147(a) of the Act, and, fresh assessments were completed under Section 143(3)/147(a) of the Act. The Income-tax Officer has assessed the income taking the status as "body of individuals" for the assessment years 1974-75, 1975-76 and 1976-77 following the view taken by the Commissioner of Income-tax (Appeals) in the case of this assessee for the assessment year 1977-78.

(3.) In appeal before the Commissioner of Income tax (Appeals), the Commissioner (Appeals) has followed the decision of the Punjab and Haryana High Court in Meera and Co. v. CIT [1979] 120 ITR 564.