Change of taxpayer status requires proper notice before assessment; assessment in a different status was held invalid.

An assessment cannot be framed in the status of a Hindu undivided family where the return was filed as an individual unless the Revenue follows the proper procedure and issues the requisite notice before making the change of status. The text states that assessing the income in a different status without such notice is procedurally defective and renders the assessment unsustainable. The assessment was therefore held invalid, null and void, and the issue was decided in favour of the assessee.

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Issues: Whether an assessment could validly be framed in the status of a Hindu undivided family when the return had been filed in the status of an individual, without issuing appropriate notice or taking proper action against the different status.

Analysis: The return was filed by the assessee as an individual, but the assessment was completed in the status of a Hindu undivided family. The assessment was held to be unsustainable because, where the Revenue seeks to assess the income in a status different from that disclosed in the return, it must follow the appropriate procedure and issue notice before making such an assessment. The reasoning accepted the assessee's objection that the change of status without proper notice rendered the assessment invalid.

Conclusion: The assessment was held to be invalid, null and void, and the issue was decided in favour of the assessee.

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