KAMAKSHYA NARAIN SINGH Vs. COMMR OF INCOME TAX

JUDGEMENT

(1.) In this case the assessee is Raja Bahadur Kamakshya Narain Singh of Ramgarh. The assessment years are 1941-42 and 1942-43. For these two years the Income-tax Officer estimated the rent of the house properties to be Rs. 970.00 and Rs. 1738 and odd and held that the Raja Bahadur was liable to be taxed in his individual capacity as the holder of an impartible estate. The matter was taken in appeal and the Appellate Assistant Commissioner held that in. view of the decision of the Privy Council in 'Commr. of Income-tax Punjab v. Krishna Kishore', AIR 1941 PC 120 (A), the income from the house property could not be assessed in the hands of the Raja Bahadur. The. view taken by the Privy Council was that the impartible estate was owned by the joint family and the income from the house property could not be charged in the hands of the holder of the impartible estate though according to the legal position in the Hindu law the holder of an impartible estate had complete right of dis-posal over the income from the house property. The matter was taken in appeal on behalf of the Income-tax Department to the Income-tax Appellate Tribunal who affirmed the view of the . Appellate Assistant Commissioner and held that income from the house property should be taxed not upon the Raja Bahadur but upon the Hindu undivided family. Thereafter the Income-tax Officer took proceedings under Section 34 of the Act and assessed the income from the house property under Section 12 of the Act. The assessee preferred an appeal to the Appellate Assistant Commissioner and on 24-5-1947 the Appellate Assistant Commissioner rejected the appeal holding that the assessment made by the Income-tax officer under Section 12 was proper. The assessee took further appeal to the Appellate Tribunal. The appeal was actually filed on 14-8-1947. But on 8-9-1948 an important event took place. On that date the Dominion Legislature enacted the Income-tax Amending Act (Act 48 of 1948) with retrospective effect. By Section 4 of that Act a new Sub-section (4) was added to Section 9, Income-tax Act. Section 4 states-

(2.) In this state of facts the Appellate Tribunal has submitted the following question of law for the opinion of the High Court-

(3.) On the first point we are definitely of opinion that the Tribunal adopted the correct procedure in taking into account the legal change brought into effect by the Income-tax Amendment Act of 1948. The powers of an Appellate Tribunal in hearing an appeal are stated in Section 33 (4), Income-tax Act. Section 33 (4) states-