1970 (3) TMI 24

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....ith the motor vehicles owned by other operators under the common management of the United Motor Transport Service Association ; that the income from the operation of the two vehicles owned by him and his wife was assessed in the hands of his Hindu undivided family for the assessment years 1951-52 to 1956-57 on the basis that it was the income of the family and, it is said, the tax due thereon was paid by the family. Subsequently, the income was also assessed in the hands of the United Motor Transport Service Association for the same assessment years and the tax assessed is now sought to be recovered from the petitioner. Pursuant to the recovery proceedings, it is alleged that it is proposed to arrest the petitioner. The house property of th....

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....d to the United Motor Transport Service Association and were in fact served upon one Baij Nath, and that consequent upon such service the firm filed returns of its income for the assessment years. The assessment orders and the notices of demand were addressed to the United Motor Transport Service Association and Service thereof was again effected upon the said Baij Nath. We find from the records produced before us that appeals against the assessments were filed by one Peter Philips on behalf of the firm, and that the several notices of demand served upon Baij Nath were filed with the appeals. The contention on behalf of the petitioner is that service of the assessment orders and the notices of demand on Baij Nath is not service upon the fir....

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...., and functioning as such partner on behalf of the firm, he filed returns of the income as well as the appeals. Service upon such a partner must be treated as service upon the firm. We, therefore, reject the contention that there was no effective service of notices of the assessment orders and the notices of demand upon the firm. The next question which arises is whether the petitioner can be treated as being in default so that recovery proceedings can be taken against him. If service of the notices of demand can be taken as service upon the firm, and no tax is paid consequent upon such notices of demand within the time allowed by it, the partner himself can be treated as being in default. The law is now clear that if a notice of demand ....