COMMISSIONER OF INCOME TAX Vs. HARISH CHANDRA GUPTA

JUDGEMENT

(1.) AT the instance of the revenue and in exercise of the power under Section 256(2) of the I.T. Act of 1961, this court called upon the Income-tax Appellate Tribunal, Cuttack Bench, to state a case and refer the following question for opinion of the court:

(2.) THE relevant assessment years are 1971-72 and 1972-73 ending on the corresponding last day of the month of March. THE brief facts are that Todermal and Nanulal were two brothers. Todermal died leaving behind his widow, Smt. Mahadevi. THE widow adopted Harish Chandra Gupta as son. Nanulal used to be assessed in the status of HUF consisting of himself, his brother's widow and the adopted son for the assessment years 1948-49 to 1950-51. On November 27, 1952, Nanulal died leaving behind a will in terras whereof all his properties stood bequeathed to Mahadevi for life and after her to Harish Chandra Gupta as full owner. For the assessment years 1951-52 to 1963-64, Harish Chandra filed returns treating his status as an individual and was assessed as such. For the assessment year 1964-65, he filed a revised return claiming the status of an HUF, but the revenue did not concede. For the assessment years 1965-66 to 1969-70, Harish Chandra filed the returns claiming the status of an HUF but conceded to assessments in the status of individual. For the assessment year 1970-71, the assessee's claim that his status was HUF was, however, accepted. THE ITO, in the years under consideration, however, did not agree to follow the result for 1970-71 assessment year and, on the basis of materials available, rejected the claim and assessed the assessee as an individual.