Law:

Section:

Section 222 of the Income-tax Act, 1961 [Corresponding to section 46(2) of the Indian Income-tax Act, 1922], read with Taxation Laws (Construction and Validation of Recovery Proceedings) Act, 1964 - Collection and recovery of tax - Certificate proceedings - Assessment years 1945-46 to 1947-48 - Assessee had filed returns of income for relevant assessment years as individual but ITO assessed him in status of HUF - On appeal, AAC as well as Tribunal while reducing income of assessee, maintained order of ITO - Thereafter, ITO issued notice of demand and on failure of assessee to pay tax, certificate proceedings were initiated - Assessee filed writ petition seeking quashing of impugned certificate proceedings - Whether there was no merit in argument of assessee that original assessment having been made on him in status of HUF, fresh assessment orders had to be passed to make him liable in his status as individual - Held, yes - Whether since notices of demand and recovery certificates were issued in assessee's name and not in name of HUF, no further notice of demand was to be issued to assessee after reduction in amount of income was made as provided in section 3(1)(b) and (c) and section 5 of Validating Act, 1964 and recovery proceedings carried on in pursuance of earlier notices were valid - Held, yes FACTS The assessee filed returns of income as "individual" but the ITO assessed him in the status of HUF. The AAC accepted the appeals in part by allowing reduction in the income of the assessee by Rs. 9,000 for the year 1946-47 and Rs. 1,200 for the year 1947-48. He also held that the status of the assessee was that of an individual and not HUF. He, therefore, ordered that the status shall be changed to that of an individual. On further appeal, the Tribunal reduced the income of the assessee for 1945-46 from Rs. 35,000 to Rs. 27,000, for 1946-47 from Rs. 56,000 to Rs. 40,000 and for the year 1947-48 from Rs. 1,25,000 to Rs. 75,000. The ITO had issued notices of demand to the assessee under sections 29 and 45 of 1922 Act alo ng with the assessment orders, but on his failure to pay the amounts, recovery certificates were sent to the Collector. In pursuance of those…

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