Law:

Section:

Section 148 of the Income-tax Act, 1961 - Income escaping assessment - Issue of notice for - Assessment year 1962-63 - Whether for initiating reassessment proceedings against a Hindu undivided family, notice under section 148 has to be addressed to Hindu undivided family although, it may be served on manager or any other adult member of family - Held, yes - Whether, however, where notice in case of assessee - HUF was addressed to petitioner, being wife of deceased karta, it was illegal and without jurisdiction - Held, yes FACTS The karta of assessee-HUF died leaving behind his wife, the petitioner, and two sons. The ITO issued notice under section 148 addressed to wife of deceased karta for re-opening assessment of the HUF for assessment year 1962-63. On instant writ petition, the petitioner contended, inter alia, that she was not the karta of her Hindu undivided family and the notice issued to her was not the notice to HUF and therefore the proceedings were without jurisdiction. It was important to note that the Department did not deny that after the death of the petitioner's husband her eldest son became the karta of the HUF. HELD For re-opening an assessment under section 147, a valid notice under section 148 is an essential pre-requisite. The notice has to be served on the assessee proposed to be reassessed. When the assessee is a Hindu undivided family the notice has to be issued to the HUF. It can be served on the manager or any other adult member of the family but it has to be addressed to the Hindu undivided family. In the instant case, though the notice stated that income of the petitioner's Hindu undivided family had got to be assessed, the notice was not addressed to the Hindu undivided family but to the petitioner. Therefore, the notice was clearly illegal and without jurisdiction. Consequently, the impugned notice was to be quashed. Note: The decision was in favour of the petitioner/assessee. JUDGMENT Govinda Bhat, J.-A Hindu undivided family by name, Amberkar Virupanna Doddayellappa & Sons, was an assessee under the Indian Income-tax Act, 1922, and the Income-tax Act, 1961. The said assessee returned an income for the assessment year 1962-63…

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