Assessment status may change in a later year, but factual proof is required when earlier years were assessed differently.

A taxpayer may claim a different assessment status in a later year, but where earlier years were assessed on a contrary basis, acceptable evidence must establish the factual change supporting the new status. The Madras HC noted that each assessment year is a separate unit, so a fresh claim was not barred, but the assessee had not produced sufficient material to prove that the jointly held agricultural properties should be assessed in the status of tenants-in-common rather than an association of persons. Because the record was inadequate to determine the correct status conclusively, the assessment could not be sustained and had to be reconsidered afresh, with liberty to adduce evidence on the proper status.

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Issues: Whether the assessee could be assessed as tenants-in-common instead of an association of persons, and whether the assessment had to be set aside and reconsidered afresh.

Analysis: The assessee claimed that the properties were jointly held by the brothers as co-owners and, therefore, their agricultural income had to be assessed separately under the status of tenants-in-common. The revenue relied on the fact that in earlier assessment years the assessee had been assessed as an association of persons and that no adequate material was produced to show a change in status for the year under consideration. The Court held that although each assessment year is a separate unit and a fresh claim could be made, the assessee had to place acceptable evidence to establish the claimed status change, especially when the earlier years had been assessed differently. Since the materials before the authorities were insufficient to conclusively determine the correct status, the matter required fresh examination.

Conclusion: The assessment could not be sustained on the existing record and was required to be reconsidered afresh, with liberty to the assessee to adduce evidence on the proper status.

Ratio Decidendi: A taxpayer may seek a different assessment status in a later year, but where earlier assessments proceeded on a contrary basis, the taxpayer must prove the factual change warranting the new status; if the record is insufficient, the assessment must be remitted for fresh determination.

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