Law:

Section:

Section 19 of the Expenditure-tax Act, 1957 - Assessment after partition of Hindu Undivided Family - Assessment year 1958-59 - Petitioner claimed that he ceased to be Karsnavan of illom pursuant to a partition in his illom on 30-3-1958 into 29 shares, and that Act having come into force on 1-4-1958, did not apply to his illom which ceased to exist before that date - Whether section 19 applies also to a case where claim relates to a partition which took place after close of accounting year - Held, yes - Whether when petitioner had put forward a claim based on partition under section 19, expenditure-tax officer was bound to make an enquiry into that claim and if he was satisfied that family property had been partitioned in manner stated therein, to record an order to that effect, and if not satisfied he had by order, to declare that said family should be deemed for purpose of Act continue to be HUF and liable to be assessed as such - Held, yes - Whether since expenditure-tax officer had not complied with said provision which was mandatory, assessment order passed by him had to be quashed - Held, yes FACTS The petitioner claimed that there was partition in Namboodiri-illom on 30-3-1958 into 29 shares with the result that he had thereafter ceased to be the Karnavan or manager of the illom. The ETO issued notice to the petitioner under section 13(2) calling upon him to file a return of expenditure of the illom in respect of the assessment year 1958-59. The petitioner in reply contended that the Act having come into force on 1-4-1958, did not apply to his illom which ceased to exist consequent on the partition effected on 30-3-1958 and that he was not the Karnavan of the illom. The ETO however, made a best assessment, and then issued notice for levying penalty for not filing the return. The petitioner then filed two writ petitions. Meanwhile the representations made to the Commissioner against the alleged irregularities followed by personal discussions ended in withdrawal of the two writ petitions and the Commissioner instructing ETO to cancel the penalty notice as soon as the original assessment was set aside. The AAC passed an order allowing the petitioner's appeal…

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