Law: Income Tax Act, 1922

Section: 5-A(6), 66(1)

Income-tax-Appellate Tribunal-Constitution-Order passed by Bench of four members-Validity of-Whether question of law Indian Income-tax Act, 1922, Ss. 5-A(6) & 66(1). Section 5-A(6) of the Indian Income-tax Act, 1922, which pro vides for the constitution of Benches of the Appellate Tribunal, does not authorise a Bench consisting of four members and hence an order made by a Bench of four members is invalid, even though one member was sitting on the Bench only in, order to gain experience. The validity of the constitution of the Tribunal is a question of law arising out of such an invalid order for the purpose of section 66(1) of the Act. JUDGMENT V. G. OAK, C. J.-The Income-tax Appellate Tribunal, Allahabad Bench, has referred the following two questions of law to this Court. "(1) Whether, on the facts and circumstances of the case, and having regard to the deed executed by the assessee on August 13, 1936, the whole of the income from the business styled as Radha Vilas Karyalaya is the income of the assessee and assessable in its hands or that half of the income belongs to a separate trust styled as Sri Ram-Lakshman-Janki ? (2) Whether the order passed by the Tribunal dated July 8, 1958, under the signature of four of its members is valid in law ?" This reference governs six assessment years, viz., 1951-52, 1952-53, 1953-54, 1954-55, 1955-56 and 1956-57. For the first five assessment years, Sita Ram, deceased, was assessed as an individual. He died on April 1, 1955. An association of persons under the style of Messrs Radha Vilas Karyalaya was assessed for the 6th assessment year 1956-57. For the same assessment year 1956-57, Sita Ram, deceased, was also assessed for a part of the accounting period. For each of these assessment years the question arose whether the assessee was liable for the whole of the income from a certain business styled as Radha Vilas Karyalaya. The assessee took up the position that half of the income belongs to a separate trust styled as Sri Ram -Laskhman-Janki. This contention raised by the assessee was overruled by the Income-tax Officer. The assessee was assessed for the whole of the income from the business styled as Radha…