MAHALLIRAM RAMNIRANJAN DAS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference under Section 256(1) of the Income-tax Act, 1961 (hereinafter to be referred to as " the Act "), by the Income-tax Appellate Tribunal, Patna Bench "A", Patna, in the matter of assessment of income-tax on M/s. Mahalliram Ramniranjan Das, Patna City, for the assessment year 1963-64.

(2.) THE following question of law has been referred to this court for opinion by the Tribunal:

(3.) AGAINST this order of the Appellate Assistant Commissinoer, the assessee filed an appeal before the Income-tax Appellate Tribunal. The Tribunal has pointed out that the assessee is an Hindu undivided family and Shri Gopi Krishna Konandia is its karta and it has several sources of income including M/s. Bharat Cold Storage which is in Ward No. 30 of the Patna, Municipal Corporation and besides other sources, the assessee is also a partner in M/s. Marwari Hotel, Frazer Road, Patna. It has also been pointed out that the jurisdiction of the assessee was always with reference to Ward No. 30 and the Income-tax Officer, A-Ward, Patna, had the jurisdiction over this area. For the assessment year 1963-64, the return of income was filed before the Income-tax Officer on October 20, 1964, and the Income-tax Officer, A-Ward, proceeded with the hearing of the case in 1967. On December 30, 1967, the Commissioner by a general order made a redistribution of jurisdiction. According to this order, the cases filed in Ward No. 30 were assigned to the Income-tax Officer, A-Ward, and the assessee, having income from hotel business, was assigned to C-Ward. This order also provided that all the partners of a firm were to be assessed by the Income-tax Officer assessing that firm. The Appellate Tribunal has also pointed out that although the question of jurisdiction was raised the Income-tax Officer did not refer the objection to the Commissioner as provided in Section 124(4) of the said Act.