COMMISSIONER OF INCOME TAX Vs. TIRLOK SINGH

JUDGEMENT

(1.) BY an order dt. 30th Sept., 1976, the ITO, A-ward, Sirsa, finalised the assessment proceedings qua the non- petitioner for the asst. yr. 1974-75 and assessed the liability of the non-petitioner to the tune of Rs. 60,990. Appeal filed by the assessee was partly allowed by the AAC, Rohtak in view of the appellate authority's own order dt. 25th Sept.,1978 whereby it had held that partial partition effected by the parties was genuine and the income of the assessee was liable to be reduced by Rs. 33,831, Dissatisfied by the order of the appellate authority, the Revenue went in appeal before the Tribunal, Chandigarh Bench. That appeal was dismissed on 11th Dec., 1980. Thereafter, the Revenue filed a petition under S. 256(1) of the IT Act, 1961 which resulted into the reference of following question of law to this Court :

(2.) THE question relating to the validity of the partial partition was also referred to this Court. Vide its order dt. 5th April, 1989 in CIT vs. Wazir Singh (1989) 179 ITR 601 (P&H) : TC 37R.869, this Court answered the reference in favour of the assessee by holding that in terms of the Expln. to s. 171 of the Act there can be partial partition merely as regards the persons constituting the HUF.