COMMISSIONER OF INCOME TAX Vs. K C BEZBARUAH

JUDGEMENT

(1.) BARUAH , J. : In this reference under S. 256(1) of the IT Act, 1961 ('the Act'), the following question has been referred for opinion of this Court :

(2.) THE facts for the purpose of answering this question may be narrated as follows : The reference pertains to the asst. yrs. 1963-64 to 1967-68. The issue involved in all these assessment years is whether the income from Narayanpur Tea Estate and Bhawanipur Tea Estate can be included in the assessments of the assessee late G.C. Bezbaruah. The Department relied on the fact that the income from the aforesaid two estates was declared by the assessee as his individual income up to the asst. yr. 1962-63 in the returns of income filed under the Act. The assessee died in the year 1966. Thereafter, returns for the present assessment years had been filed by the legal representatives of the assessee. They, however, claimed that the income from the two tea estates were not the individual income of the deceased assessee. They, on the other hand, had contended that those incomes belonged to two separate firms. They claimed that Bhawanipur Tea Estate belonged to a partnership firm consisting of late G.C. Bezbaruah and Shri K.C. Bezbaruah, one of his sons as partner and the business of Narayanpur Tea Estate had been carried on by another firm consisting of late G.C. Bezbaruah, one of his sons as partner and the business of Narayanpur Tea Estate had been carried on by another firm consisting of late G.C. Bezbaruah and his two sons P.C. Bezbaruah and K.C. Bezbaruah. This claim was not accepted by the Department on the ground that there was no evidence to show that the two firms actually existed and had been carrying on business of the aforesaid two estates. Against the order passed by the Departmental authorities, the legal representatives of late G.C. Bezbaruah filed appeal before the Tribunal. The Tribunal came to the conclusion that as late G.C. Bezbaruah had declared the income from the aforesaid two estates as his own income in the returns of income filed up to the asst. yr. 1962-63, it was to be held that the income in fact belonged to him (late G.C. Bezbaruah). Against that order, the heirs of the assessee late G.C. Bezbaruah requested the Tribunal to refer the question to this Court under S. 256(1) for opinion. This Court in IT Ref. No. 7 of 1980 while disposing of the same observed thus :