COMMISSIONER OF INCOME TAX Vs. CHANDMAL RAJGARHIA

JUDGEMENT

(1.) IN all these cases the assessee is the same but the assessment years are different. Though the questions of law for the different assessment years, in form, are differently worded, in substance, the question of law referred to this court is the same. For the assessment years 1975 76 and 1977 78 corresponding to Tax Cases Nos. 205 of 1981 and 65 of 1984, respectively, the common question of law referred to this court for opinion under Section 256(2) of the Income tax Act, 1961 (hereinafter to be referred to as 'the Act' only), reads as follows :

(2.) LIKEWISE for the assessment years 1976 77, 1973 74 and 1971 72 corresponding to Tax Cases Nos. 62, 63 and 64 of 1984, respectively, the common question of law referred to this court for opinion under Section 256(2) of the Act is the same which reads as follows :

(3.) THE brief facts leading to the references as mentioned above may now be noted. The assessee in all these cases is Messrs. Chandmal Rajgarhia, Giridih. In a partition suit filed by the two major sons of Sri Chandmal Rajgarhia, the mica mining business was allotted jointly to Chandmal Rajgarhia and his wife, each having an equal share. For all the assessment years in question, the Income tax Officer assessed the assessee in the status of an association of persons and levied income tax accordingly in the hands of the association of persons rejecting the contention of the assessee that the income should be divided between the two members of the association of persons and assessment should be made separately as the mining business carried on by them was not as a result of a joint enterprise but it was allotted by virtue of an award in the partition suit. The assessee contended before the Income tax Officer that the income may be computed in the hands of the association of persons but tax must, however, be levied separately on the members of the association of persons. That was not accepted by the Income tax Officer.