COMMISSIONER OF INCOME TAX Vs. HUKAM SINGH

JUDGEMENT

(1.) On an application filed by the petitioner, the Income -tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for short, "the Tribunal"), has referred the following question of law for the opinion of this Court : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law upholding the decision of the CIT(A) who had declared the reassessment proceedings as invalid on the ground that these had not been initiated against all the legal heirs of the deceased respondent -

(2.) PURAN Singh (predecessor of non -petitioners) was an income -tax/ wealth -tax/gift -tax assessee. He had 232 acres of land in village Dhumsi, District Kurukshetra. He transferred a major portion of his land to his six sons through partition, included a share in the profits of a firm of commission agents, namely, M/s Puran Singh Hukam Singh. For the asst. yrs. 1979 -80, 1985 -86 and 1986 -87, the AO completed the assessment under s. 143(1) of the IT Act, 1961 (for short, "the Act"). Later on, he received information that Puran Singh had large deposits in banks which had not been properly under s. 148 of the Act. Notice for the year 1979 -80 was issued with the prior approval of the CBDT. The notices were duly served on Sarv Shri Hukam Singh, Mann Singh, Paul Singh and Ajmer Singh, all the legal heirs of the late Shri income of the late Shri Puran Singh for the asst. yr. 1979 -80. The appeals filed by Hukum Singh and three others were allowed by the Commissioner of Income -tax (Appeals), Karnal [for short, "CIT(A)"], on the ground that notices of reassessment proceedings had not been given to two of the legal heirs of the late Shri Puran Singh. Further appeals filed

(3.) WE have heard Shri Rajesh Bindal, learned counsel for the petitioner and perused the record.