Law:

Section:

Section 148 of the Income-tax Act, 1961 [Corresponding to section 34 of the Indian Income-tax Act, 1922] - Income escaping assessment - Issue of notice for - Assessment years 1946-47 to 1949-50 - Assessee-HUF filed its return for relevant assessment years on 18-11-1950 - As ITO had rejected claim under section 25A of 1922 Act and declined to hold that parent HUF had suffered partition, he took no action upon return filed by assessee - But after order of Tribunal dated 28-10-1954 in appeals filed by parent HUF, ITO issued notice for reassessment on 4-3-1955 - Though assessee filed returns pursuant to said notice yet it assailed notice on ground that it was invalid inasmuch as assessee had already filed returns relating to those years on 18-11-1950 - ITO however rejected claim of assessee and made reassessment - Whether, on facts, impugned notices issued by ITO under section 34 of 1922 Act were barred by limitation and consequently, assessment orders passed in pursuance of said notices were invalid - Held, yes FACTS There was a HUF which carried on business. During the assessment proceedings for the assessment years 1946-47 to 1949-50, a claim was made under section 25A that the HUF had disrupted with effect from 19-5-1945, giving rise to smaller HUFs. One of such smaller HUF was the assessee. In the assessment proceedings against the parent HUF, the ITO rejected the claim under section 25A and assessed the entire income in the hands of the parent family. The parent family appealed unsuccessfully to the AAC against the rejection of the claim under section 25A and thereafter took the case in second appeal to the Tribunal. The Tribunal, accepted the claim under section 25A and directed the ITO to recognise the complete partition of the parent HUF with effect from 19-5-1945. Parallel appeals were filed against the assessments of the income in the hands of the parent HUF and these assessment were set aside in second appeal by the Tribunal by its order dated 28-10-1954, with the direction that the fresh assessments should be made, one for the period 1945 up to which the HUF was in existence, and the other on the component units. Meanwhile, on 18-11-1950, the…

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