Law:

Section:

I. Section 153, read with section 146 of the Income-tax Act, 1961 [Corresponding to section 34(3), read with section 27 of the Indian Income tax Act, 1922] - Assessment - Time limit for completion of - Assessment year, 1955-56 - Whether individual and HUF are totally different units of taxation and are two different assessees - Held, yes - In response to notice under section 22(2) of 1922 Act issued to 'S' in his individual capacity, he filed a return on behalf of his HUF on 29-10-1959 - ITO passed an ex-parte order of assessment on 'S' as an individual, but subsequently, on 'S's application under section 27 of 1922 Act, cancelled that order - Thereafter, on 6-2-1961, ITO made an assessment on HUF on basis of return submitted by 'S' on 29-10-1959 - Whether ex parte order which was set aside under section 27 of 1922 Act was assessment made on 'S' in status of individual, and, therefore, assessment made against HUF was not an assessment under section 27 of 1922 Act - Held, yes - Whether, therefore, assessment made against HUF on 6-2-1961 was clearly barred by time - Held, yes FACTS-I For the assessment year 1955-56, in response to a notice under section 22(2) to 'S' in the status of an individual, 'S' submitted a return on 29-10-1959 on behalf of his HUF. On 29-2-1960, the ITO passed and ex-parte assessment order on him as individual under section 23(4), but on an application filed by 'S' under section 27, the ITO set aside the ex parte assessment order on 16-12-1960. On 6-2-1961, an assessment was made on the HUF on the basis of the return submitted on 29-10-1959. The department, in support of its contention that assessment was made within time, relied on the second proviso to Section 34(3), and took the plea that the reassessment in the instant case was made under section 27. This plea was upheld upto the Tribunal, but the High court held it otherwise. On appeal before the Supreme Court : HELD-I The return submitted by 'S' was in his capacity as the karta of his family. The status shown in the return was HUF. He filed no return in the status of an individual. The same person could be taxed both as an individual as well as the karta of his family. The two…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492