MISRILAL JAIN Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN this case the assessee, Misrilal Jain, is the partner of a firm called Messrs. Jain Petrol Supply Company, Hazaribagh. The assessee has eight annas share in this firm and the other partner, Kanhaiya Lal Jain, has the remaining eight annas share. IN the present case we are concerned with the assessment year 1952-53. It appears that for the assessment year 1949-50 there was an assessment of income-tax upon Jain Petrol Supply Company in the status of unregistered firm. This assessment was made on the 30th of September, 1950.

(2.) THE assessments of the partners, namely, the assessee and Kanhaiyalal Jain, for the same assessment year were also completed on the same date. For the assessment year 1950-51 the partnership was treated as an unregistered firm. THE assessment of Jain Petrol Supply Company was made for this assessment year in the status of an unregistered firm under section 23(4) of the Income-tax Act on the 28th of April, 1951. On the 23rd of July, 1951, a notice was issued against the assessee under section 18A(1) of the Income-tax Act for advance payment of income-tax on the basis of the assessment order dated the 30th September, 1950, for the assessment year 1949-50. It was contended on behalf of the assessee before the Income-tax Appellate Tribunal that the issue of the notice under section 18A(1) of the Income-tax Act ought to have been made on the basis of the assessment of the unregistered firm on the 28th of April, 1951, for the assessment year 1950-51. It was submitted on behalf of the assessee that the issue of the notice under section 18A(1) on the basis of the assessments order dated the 30th September, 1950, for the assessment year 1949-50 was legally invalid. THE argument was rejected by the Income-tax Appellate Tribunal and the appeal of the assessee was dismissed. Under section 66(1) of the Income-tax Act of the Income-tax Appellate Tribunal has stated a case on the following question of law for the opinion of the High Court.