Law: Income Tax Act, 1922

Section: 3, 14(2)(6), 34

Income-tax-Association of persons-Assessment of-Option of officer to assess association or individual members Reassessment - Change of mind - Whether ground for reopening assessment-Purchase and sale of lands after plotting out by association of persons-Proportionate profit assessed in hands of individual members - Subsequent notice to assess Association-Whether officer has jurisdiction-Writ of prohi bition-Whether can be issued-Income-tax Act, 1961, Ss. 3, 147 & 148-Indian Income-tax Act, 1922, Ss. 3, 14(2)(6) & 34. In order to charge income-tax on an association of persons the assessing authority can either assess the association as such or its members individually. Though a specific exemption is granted to a member who has been assessed on the income derived by him from the joint adventure in case the association is again or presumably simultaneously tackled for purposes of assessment and charge, this cannot be considered as an enabling, provision which would entitle the officer to simultaneously keep alive the two alternative processes of assessment over an asso ciation of persons as contemplated in section 3 of the Income-tax Act, 1922. The sine qua non to exercise such an option is that if the officer is apprised of the relevant particulars regarding the concerted action in which the association is involved, it is up to him to call upon the association to file a return, assess it and charge it to tax or, in the alternative, deal with the individual member qua an individual and complete the assessment in respect of the income derived by him from the joint adventure of the association of persons in which such individual was a member, bearing in mind the relevant gains or losses which the revenue as suet might incur. It is his duty as prospector of revenue to go into the subterranean details so that at the time when he exercises an option it should appear that he has made up his mind one way or the other. The officer cannot, thereafter, by means of an overt voluntary act of commission on his part, change his mind or mood and vest himself with jurisdiction to reopen assessments which have become final in the eye of law. The petitioner's father…