Law:

Section:

JUDGMENT Rajagopalan, J.-These petitions arose out of proceedings under the Income-tax Act for the assessment years 1946-47 and 1948-49; the corresponding account years ended respectively with 31st March, 1946, and 31st March, 1948. The assessee was a Hindu undivided family, of which M.K. Ramaswami Aiyar was the karta. He died on 4th June, 1949. The petitioner is the present karta of that family. Ramaswami Aiyar, as the karta of his undivided Hindu family, was a partner of the Madura Knitting Company, and the share of profits derived from this business constituted the principal source of income of this undivided family. The assessment of the assessee could therefore be completed only after his share of the profits of the company had been ascertained. Further, when the assessment of the company was revised on appeal or on a reference under section 66(1) of the Act, the share of the assessee would become liable to a corresponding revision. The assessee became liable to pay tax in advance under the provisions of section 18A of the Act, notices having been issued to him under sub-section (1) of section 18A in each of the years with which we are concerned in these proceedings. Ramaswami Aiyar purported to avail himself of the right conferred on an assessee by sub-section (2) of section 18A. With reference to the assessment year 1946-47 he lodged a revised estimate of his income on 15th March, 1946. It was mistakenly assumed at one stage that it was only lodged on 20th March, 1946. He estimated the income for the relevant account year at Rs. 45,000. For the assessment year 1948-49 he estimated his income, again at Rs. 45,000. That estimate was furnished on 15th March, 1948. The actual income on which the assessee was finally assessed in each of the assessment years exceeded these estimates by very much more than the tolerance permitted by sub-section (6) of section 18A, the difference being much more pronounced in the assessment year 1948-49 than in 1946-47. The assessee, therefore, became liable to pay interest under the provisions of sub-section (6) of section 18A. The assessment of the assessee for 1946-47 was completed by the Income-tax Officer on 28th November,…

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