Assessment of registered firm remains valid despite prior individual partner assessments under the statutory scheme

The charging provision was read to permit assessment of income only once, but not to prevent assessment of a firm merely because its partners had already been assessed individually on their shares. For a registered firm, the statutory scheme required assessment of the firm's total income, followed by allocation of each partner's share, with rectification machinery available if partner assessments needed adjustment after the firm's income was determined. The prior individual assessments of the partners therefore did not invalidate assessment of the firm in its proper status, and the issue was answered against the assessee.

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Issues: Whether, on the facts and circumstances of the case, the assessment of the firm as a firm for the assessment years 1954-55 and 1955-56 would be bad in law because assessments had already been made on its partners individually.

Analysis: The charging provision was construed to permit assessment of income only once, but not to bar assessment of a firm merely because the partners had already been assessed on their shares. For a registered firm, the statutory scheme required assessment of the firm's total income and then assessment of each partner's share, with the machinery of rectification available if the partners' assessments required adjustment after the firm's income was determined. The prior assessment of partners therefore did not by itself invalidate proceedings to assess the firm in its proper status.

Conclusion: The issue was decided against the assessee and in favour of the Revenue; the assessment of the firm was not bad in law on the ground that the partners had already been assessed individually.

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