Law:

Section:

JUDGMENT Meredith, J.-The question which has been referred to us by the Income-tax Appellate Tribunal as a point of law for decision is :- "Whether in the circumstances of this case proceedings under Section 34 in respect of the assessment year 1939-40 were validly initiated and completed against the Hindu undivided family, which had ceased to exist then, and an order under Section 25A(1) accepting the partition of the Hindu undivided family had already been passed." This question has been referred upon the application of one Laxmi Narain Bhadani under Section 66(1) of the Income-tax Act. Mr. Bhadani and his brother and son constituted formerly a Hindu undivided family, and were assessed in that status for income-tax up to the end of the assessment year 1939-40. In the course of assessment for 1940-41, partition was claimed and the Income-tax Officer, after necessary enquiries, by an order dated the 9th of February, 1941, under Section 25A, accepted the claim of partition. During 1943-44 the In. come-tax Officer discovered that the Hindu undivided family had been under assessed for 1939-40, which fact was not disputed. Thereupon he took action under Section 34. Notice under that section was issued in the name of the Hindu undivided family and served upon Mr. Laxmi Narain Bhadani, who had previously been the karta. Mr. Bhadani filed his return in response to the notices under Sections 22(4) and 23(2), and thereupon a supplementary assessment was made. Thereafter Mr. Bhadani raised the question before the Appellate Assistant Commissioner, and subsequently before the Appellate Tribunal, whether proceedings under Section 34 could be taken in the case of a Hindu undivided family no longer existing. This contention was rejected both by the Assistant Commissioner and the Tribunal. Before us it has been repeated by Mr. B.N. Jain on behalf of Mr. Bhadani, and it has further been argued as arising upon the question submitted, that the proceedings were in any event not validly initiated since notice should have been issued and served upon each member of the defunct Hindu undivided family. It is desirable to quote the two relevant sections. They are as follows :- Section…

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