COMMISSIONER OF INCOME TAX Vs. SURESH CHANDRA GUPTA

JUDGEMENT

(1.) THIS reference under Section 256(1) of the Income-tax Act, 1961, is at the instance of the Revenue to answer the following question of law, namely :--

(2.) FOR the assessment year 1971-72, the assessee filed returns in the status of a Hindu undivided family. The Income-tax Officer found that in the earlier years the assessee had been assessed in the status of an individual. Accordingly, the Income-tax Officer completed the assessment of the assessee in the status of an individual. Admittedly, at no point of time before completing the assessment, the Income-tax Officer gave any notice or even an indication to the assessee that his claim for assessment in the status of a Hindu undivided family was not likely to be accepted or that he was required to show that he was entitled to an assessment under the status of a Hindu undivided family and not as an individual. The Appellate Assistant Commissioner affirmed the Income-tax Officer's view on appeal. The Tribunal, however, accepted the further appeal of the assessee. It has held that the return being filed in the status of a Hindu undivided family, the assessment could not be completed in the status of an individual without giving notice of any such intention to the assessee before completing the assessment. This reference at the instance of the Revenue arises out of that order.