Law:

Section:

Section 171 of the Income-tax Act, 1961 [Corresponding to section 25A of the Indian Income-tax Act, 1922] - Hindu Undivided Family - Assessment after partition - Whether an order recognising partition made under 171(3) is an order which is available only for purpose of 1961 Act, and it cannot be projected into assessment of tax or levy of penalty under 1922 Act - Held, yes - Whether, therefore, order recognising partition made by Income-tax Officer under section 171, sub-section (3), could not be invoked by assessee for purpose of demolishing legal fiction in section 25A, sub-section (3) of 1922 Act - Held, yes Section 212(3) of the Income-tax Act, 1961 [Corresponding to section 18A(3) of the Indian Income-tax Act, 1922] - Advance tax - Estimate by assessee - Assessment year 1956-57 - As assessee did not file estimate of advance tax for assessment year 1957-58, Income-tax Officer issued notice dated 15-3-1958 for levying penalty - Order imposing penalty was passed on 20-11-1965 - In meantime, total partition of properties of Hindu undivided family was effected and Income-tax Officer passed order under section 171(3) recording finding that there was total partition of joint family property with effect from, 12-2-1962 - Whether, order recognising partition made by Income-tax Officer under section 171, sub-section (3), could not be invoked by assessee for purpose of demolishing legal fiction in section 25A, sub-section (3) of 1922 Act - Held, yes - Whether, since, no order recognising partition was passed under section 25A, sub-section (1) of 1922 Act, legal fiction enacted in section 25A, sub-section (3) of 1922 Act continued to operate in its full strength and vigour and assessee must be held to continue to be a Hindu undivided family for purposes of old Act - Held, yes - Whether Income-tax Officer was, therefore, entitled to impose penalty on assessee despite order under section 171, sub-section (3), recognising partition was passed with effect from 12-2-1962 - Held, yes FACTS The assessee was a Hindu Undivided Family (HUF). It had not been assessed for any assessment year prior to 1956-57, but for the assessment year 1956-57, a notice under section 22(2) of…

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