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Issues: Whether notices issued for reopening assessments under the Income-tax Act, 1961 were valid when an order under section 25A of the Indian Income-tax Act, 1922 recognising partition had not been set aside.
Analysis: An order under section 25A, once passed recognising a partition by metes and bounds, remains operative for subsequent years until displaced in the manner provided by law. So long as that order stands, the revenue cannot proceed on the contrary footing that the family still continued as a Hindu undivided family for the purpose of reopening assessments. The proper course, if the earlier order is alleged to have been obtained by misrepresentation, is to seek setting aside of that order under the revisional power corresponding to section 33B of the 1922 Act, not to ignore it while issuing reassessment notices under sections 147 and 148 of the 1961 Act.
Conclusion: The notices under sections 147 and 148 were without jurisdiction and were liable to be quashed; the writ petition was allowed in favour of the assessee.
Ratio Decidendi: A subsisting order recognising partition under section 25A of the 1922 Act bars reassessment proceedings on the contrary assumption of an undivided family until that order is set aside in accordance with law.
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