COMMISSIONER OF INCOME TAX Vs. SHRI KHACHERU (HUF)

JUDGEMENT

(1.) THE revenue has preferred this appeal under Section 260A of the Income Tax Act, 1961 (for short, "the Act") against the order dated 12.10.2007 passed by the Income Tax Appellate Tribunal, Delhi Bench "A" New Delhi in ITA No. 2908/Del/2003 for assessment year 1999 -2000, proposing to raise the following substantial questions of law:

(2.) DURING the assessment proceedings, the assessee pleaded partial partition of HUF dated 18.6.1998 which was not recognized in view of provisions of Section 171(9) of the Act. On appeal, the CIT(A) partly upheld the claim of the assessee, which was affirmed by the Tribunal. The Tribunal observed:

(3.) AT the outset, learned Counsel for the assessee brought to our notice a judgment of Division Bench of this Court dated 20.1.2009 in ITA No. 30 of 2006 (Tarlochan Singh v. Commissioner of Income Tax and Anr.) holding that the expression "hitherto" occurring in Section 171(9) of the Act would mean that assessment should not have taken place as HUF before the date of partial partition. He submitted that in the present case no assessment had taken place prior to the date of partial partition.