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Section 253 of the Income-tax Act, 1961 [Corresponding to section 33 of the Indian Income-tax Act, 1922] - Appellate Tribunal - Appeal to - Whether where penalty was levied on assessee HUF after it became disrupted, erstwhile coparceners were entitled to prefer appeal and question levy of penalty - Held, yes FACTS The assessee-HUF, of which the petitioner was member, was disrupted on 31-10-1957 and the penalty was levied on 5-11-1957. The petitioner preferred an appeal to the Tribunal questioning the levy of penalty. The Tribunal held that there could be no legal entity in existence to come up in appeal to the Tribunal and thus, appeal was incompetent. It, therefore, dismissed the appeal. On reference : HELD The view taken by the Tribunal was erroneous. If penalty was levied as against a Hindu undivided family and the members of the Hindu undivided family effected partition between them, there could be no doubt that the erstwhile coparceners were entitled to prefer an appeal and question the levy of penalty. The members of the Tribunal erred in taking the view that after the division was effected between the members of the Hindu undivided family none of the erstwhile coparceners were entitled to prefer an appeal and that the levy of penalty should stand. Note : The case has been decided in favour of the assessee. CASE REVIEW Mahindra Kumar Mohanlal v. Commissioner of Excess Profits Tax [1958] 33 ITR 360 followed & relied upon. CASES REFERRED TO Mahindra Kumar Mohanlal v. CEPT [1958] 33 ITR 360 (Bom.). JUDGMENT Umamaheswaram, J.-This reference arises under section 66(1) of the Indian Income-tax Act, 1922. Penalty was levied against a Hindu undivided family of which the petitioner was a member. According to the petitioner after disruption of the joint family status, he preferred the appeal to the Income-tax Appellate Tribunal questioning the levy of penalty. The Appellate Tribunal held as follows: "According to the assessee, the Hindu undivided family, which is the assessee, had become disrupted on October 31, 1957, whereas the penalty was levied on November 5, 1957. For this it relies upon the decision of the Income-tax Officer inregard to the assessee's…

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