TaxTMI Login
AI Drafter - (New and Powerful) ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Just a moment...
AI Drafter - (New and Powerful) ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether Section 171(6) of the Income-tax Act, 1961 could be applied to impose personal and joint and several liability on members of a Hindu undivided family in respect of assessments completed under the Income-tax Act, 1922, and whether Section 297(2)(d) of the Income-tax Act, 1961 brought that provision into play on reassessment.
Analysis: Section 25A of the Income-tax Act, 1922 dealt with partition of a Hindu undivided family but did not create personal liability of members in the case of a partial partition. Section 171(6) of the Income-tax Act, 1961, by contrast, introduced a new substantive obligation by authorising recovery of tax from every person who was a member before partition and by making such persons jointly and severally liable. A provision creating a new liability cannot be applied retrospectively to assessments already completed under the old Act unless the language clearly so requires, and nothing in Section 171(6) justified such a construction. Section 297(2)(d) was also held to be confined to the machinery for reassessment of escaped income; the words that all provisions of the new Act shall apply accordingly did not incorporate a substantive liability-creating provision such as Section 171(6).
Conclusion: Section 171(6) did not apply to the assessees' pre-1962 assessments, and the Revenue could not recover the reassessed tax personally from the members of the Hindu undivided family under Section 297(2)(d).
TaxTMI 
