| Citation(s) |
|---|
| 1972 SLD 3022 = 1972 PTD 176 |
Supreme Court of India
Civil Appeals Nos. 7:4 to 756 of 1966, decided on 22nd August 1968. (Appeals by special leave from the judgment and order of the Madras High Court dated September 16, 1964, in Tax Case No. 157 of 1960 (Reference No. 74 of 1960)).
Presented By: J. C. Shah, V. Ramaswami and A. N. Grover, JJ
M. K. K. R. Muthukaruppan Chettiar v. Commissioner of Income-tax (1965) 56 I T R 674 reversed on different grounds. Commissioner of Income-tax v. Ranchhoddas Karsondas (1959) 36 I T R 569 (S C) applied. [The Supreme Court did not decide whether the observations of the Appellate Assistant Commissioner declining to assess the income of the Hindu undivided family operated to lift the bar of limitation qua the assessment of income of the separated members]. Commissioner of Income-tax v. Scindia Steam Navigation Co. Ltd. (1961) 42 I T R 589 (S C) ; Income-tax Officer v. Murlidhar Bhagwandas (1964) 52 I T R 335 (S C) and Sivalingam Chettiar (N. Kt.) v. Commissioner of Income-tax (1968) 66 I T R 586 (S C) ref. M. C. Chagla, Senior Advocate (B. Dutta and Mrs. Anjali K. Verma, Advocates and J. B. Dadachanji & Co., Advocates with him) for Appellants. D. Narasaraju, Senior Advocate (S. K. Aiyar, B. D. Sharma and S. P. Nayar, Advocates with him) for
Respondent.
Civil Appeals Nos. 7:4 to 756 of 1966, decided on 22nd August 1968. (Appeals by special leave from the judgment and order of the Madras High Court dated September 16, 1964, in Tax Case No. 157 of 1960 (Reference No. 74 of 1960)).
Presented By: J. C. Shah, V. Ramaswami and A. N. Grover, JJ
M. K. K. R. Muthukaruppan Chettiar v. Commissioner of Income-tax (1965) 56 I T R 674 reversed on different grounds. Commissioner of Income-tax v. Ranchhoddas Karsondas (1959) 36 I T R 569 (S C) applied. [The Supreme Court did not decide whether the observations of the Appellate Assistant Commissioner declining to assess the income of the Hindu undivided family operated to lift the bar of limitation qua the assessment of income of the separated members]. Commissioner of Income-tax v. Scindia Steam Navigation Co. Ltd. (1961) 42 I T R 589 (S C) ; Income-tax Officer v. Murlidhar Bhagwandas (1964) 52 I T R 335 (S C) and Sivalingam Chettiar (N. Kt.) v. Commissioner of Income-tax (1968) 66 I T R 586 (S C) ref. M. C. Chagla, Senior Advocate (B. Dutta and Mrs. Anjali K. Verma, Advocates and J. B. Dadachanji & Co., Advocates with him) for Appellants. D. Narasaraju, Senior Advocate (S. K. Aiyar, B. D. Sharma and S. P. Nayar, Advocates with him) for
Respondent.
ESTATE OF THE LATE A. M. K. M. KARUPPAN CHETTIAR
VERSUS
COMMISSIONER OF INCOME-TAX, MADRAS
Law: Income Tax Act, 1922
Section: 34(1), 34(3)
Income-tax-Assessment-Notices issued to Hindu undivided family-Returns submitted by member as individual-Assessment of family instead of individual-Appellate Assistant Commissioner accepting partition in family and annulling assessments on family-Whether gives jurisdiction to Income-tax Officer to issue notice under S. 34-Reference-Question raised before Tribunal but not expressly considered-Indian Income-tax Act, 1922, Ss. 34(1), 34(3), second proviso, 66-[M. K. K. R. Muthukaruppan Chettiar v. Commissioner of Income-tax (1965) 55 I T R 674 reversed on different grounds]. The assessee, his son and his grandsons formed a Hindu undivided family which was assessed as such till the assessment year 1948-49. In the course of the proceedings for 1949-50 it was claimed that there was a partition between the assessee on the one hand and his son and grandsons on the other. For the assessment years 1950-51, 1951-52 and 1952-53, pursuant to notices issued on the family, the assessee filed returns in his individual capacity in respect of income from the several sources that fell to his share in the partition. The Income-tax Officer rejected the claim of partition, and, treating the returns filed by the assessee as returns filed by the family, he assessed the family. On appeal, the Appellate Assistant Commissioner held that there was a complete partition between the assessee, on the one hand, and his son representing the smaller family consisting of the son and the grandsons, on the other, recorded the partition under section 25-A of the Income-tax Act, 1922, and set aside the assessments, observing that the income required to be considered in the hands of the separate coparceners. Thereafter, the assessee, in his individual capacity, filed returns for the assessment years 1950-51 and 1951-52 on February 3, 1955, and a return for the assessment year 1952-53 on June 30, 1956. Being of the opinion that he was entitled to give effect to the order of the Appellate Assistant Commissioner the Income-tax Officer issued notices under section 34 for the assessment years on March 2, 1957. In compliance with the notices the assessee submitted returns under protest and ignoring his…