Law:

Section:

Section 260 of the Income-tax Act, 1961 [Corresponding to section 66(5) of the Indian Income-tax, Act, 1922] - Decision of High Court/Supreme Court on case stated - Assessment year 1948-49 - Assessee was karta of HUF - Income of HUF and assessee during relevant assessment year was clubbed and assessed as individual - Constructive remittance of foreign profits belonging to HUF for year 1942, was assessed as individual income of assessee - Tribunal held that clubbing of income was not justified and directed ITO to redo assessment afresh - On reference application made by assessee, High Court held that it was open to Tribunal to give finding that it was HUF and not assessee that received profit but it had no jurisdiction to direct a fresh assessment - In consequential order under section 66(5) of 1922 Act Tribunal held that remittance of foreign profits could not be included in assessment of assessee - Department did not file reference against order of Tribunal - Thereafter, after about 8 years of passing of said order under section 66(5) of 1922 Act, department filed writ petition challenging said order of Tribunal - Whether since department allowed order of dismissal of appeal to stand, they could not now question same - Held, yes - Whether Tribunal had jurisdiction to decide question of assessment of foreign remittance and therefore, order passed under section 66(5) of 1922 Act was perfectly in order - Held, yes - Whether filing of writ petition after a period of eight years after passing on order under section 66(5) of 1922 Act was liable to be dismissed on ground of unreasonable and unexplained delay - Held, yes FACTS The assessee alongwith his nephew formed a HUF. The assessee had been assessed to income-tax separately as karta of the HUF with respect to the income from the family property and as individual in respect of the income from his separate property. His nephew died on 12-3-1948. For the assessment year 1948-49, the assessee submitted two returns, one on behalf of the family and the other as an individual. But, during the assessment proceedings before the ITO, the assessee claimed that since his nephew died, the assessee should be assessed only as…

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