Law:

Section:

Section 155 of the Income-tax Act, 1961 [Corresponding to 35(5) of the Indian Income-tax Act, 1922] - Rectification of mistakes - Other amendments - Assessment years 1951-52 to 1955-56 - Petitioner/assessee was a partner in two different firms - Each of two minor sons of assessee had been admitted to benefits of two partnership firms - Individual assessments of assessee for assessment years in question were completed in and before year 1957 - On assessment of one of aforesaid firms, share income of assessee was rectified in year 1960 - Subsequently in year 1963, ITO issued notices to assessee stating that his individual assessments had to be altered because share income of his minor sons had not been included in his total income in any of relevant assessment years - Whether though under section 16(3)(a)(ii) of 1922 Act income of minor sons had to be included in computing total income of assessee for purposes of assessment, yet it could have been only done if there was a mistake apparent on face of record and that too within four years from date of assessment order - Held, yes - Whether same not having been done, department could not try in year 1963 to correct that mistake under section 35(5) of 1922 Act - Held, yes FACTS The petitioner assessee was a partner of two different firms. Each of the two minor sons of the petitioner had been admitted to the benefits of the two partnerships. The firms had been duly registered under the Income-tax Act. The individual assessments of the petitioner for the assessment years 1951-52 to 1955-56 were completed in and before 1957. On the assessments of one of these firms in each of these five years, the share income of the petitioner was rectified in and before 1960. On appeals, the Tribunal reduced the assessments made on the firm. The minor sons of the petitioner filed separate returns and they were separately assessed. In February 1963, ITO issued notices to the petitioner stating that his individual assessments had to be altered because the share income of his minor sons had not been included in his total income in any of the five years. The petitioner protested on the ground that it was not open to the ITO in law to…

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