LAXMI NARAIN BHADANI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE question which has been referred to us by the Income-tax Appellate Tribunal as a point of law for decision is :-

(2.) THIS question has been referred upon the application of one Laxmi Narain Bhadani under Section 66(1) of the Income-tax Act. Mr. Bhadani and his brother and son constituted formerly a Hindu undivided family, and were assessed in that status for income-tax up to the end of the assessment year 1939-40. In the course of assessment for 1940-41, partition was claimed and the Income-tax Officer, after necessary enquiries, by an order dated the 9th of February, 1941, under Sections 25A, accepted the claim of partition. During 1943-44 the Income-tax Officer discovered that the Hindu undivided family had been under assessed for 1939-40, which fact was not disputed. Thereupon he took action under Section 34. Notice under that sections was issued in the name of the Hindu undivided family and served upon Mr. Laxmi Narain Bhadani, who had previously been the karta. Mr. Bhadani filed his return in response to the notices under Sections 22(4) and 23(2), and thereupon a supplementary assessment was made.

(3.) THERE appears to be only one decided authority upon the point, that of the Madras High Court in Commissioner of Income-tax, Madras v. K. M. N. N. Swaminathan Chettiar, and in that the view which I have just expressed has been taken.