Prior assessment of partner's share income barred a later assessment of the firm for the same income.

Once a partner has already been assessed on her share income from a firm for the relevant year, a further assessment of the firm on the same income is not legally permissible. The Madras HC applied the settled principle under the Income-tax Act, 1961 and held that the prior assessment of the partner barred a subsequent assessment of the firm for the same year. The fact that the firm had earlier been assessed as an association of persons did not change the controlling rule, because the decisive issue was the impermissibility of a second assessment on the same share income. The question was answered in favour of the assessee.

---

---

Issues: Whether an assessment could be made on the assessee-firm as an unregistered firm for the assessment year 1965-66 after one of its partners had already been assessed on her share income from the firm for the same year.

Analysis: The Court applied the principle earlier recognised under the Income-tax Act, 1961 that, once a partner has been assessed on the share income from the firm, a subsequent assessment of the firm for the same income is not legally permissible. The fact that the firm was assessed in the status of an association of persons did not alter the controlling principle, because the decisive issue was whether a further assessment could validly be made after the partner's assessment had already been completed.

Conclusion: No assessment could be made on the assessee-firm after the assessment on the partner, and the question was answered in the affirmative in favour of the assessee.

---