TaxTMI 
TaxTMI 
1971 (2) TMI 7
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....r the assessment year 1962-63, it filed a return of its total income, and also applied for renewal of the registration. Renewal was refused by the Agricultural Income-tax Officer, Chittoor, who by his order, exhibit P-5, dated November 1, 1963, assessed it as unregistered firm. It filed O. P. No. 2 of 1963 in this court to quash the above assessment. This court, by its judgment, exhibit P-3, dated June 16, 1964, set aside the assessment holding that the assessment cannot be sustained in the light of the finding of the Agricultural Income-tax Officer that there was no partnership under law. This court also observed that the Income-tax Officer would be free to proceed afresh in accordance with law. Thereupon, the respondent, the Inspecting As....
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...., 1969. Exhibits P-1(a) and P-2(a) are notices under section 35 of the Act calling upon each of the petitioners to deliver to the respondent a return of the total agricultural income assessable for the year 1962-63. Exhibits P-1 and P-2 are notices requiring each of the petitioners as principal officers of the association of persons consisting of the four co-owners to file the return of agricultural income for the year 1962-63. This writ petition has been filed to quash the above notices and to direct the respondents to forbear from taking any steps pursuant thereto. The main contention urged by counsel for the petitioners is that the impugned proceedings are barred under section 35 of the Act, which provides a period of three years from....
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....in which the agricultural income was first assessable : Provided that where a notice under sub-section (1) has been issued within the time therein limited, the assessment or reassessment to be made in pursuance of such notice may be made before the expiry of one year from the date of the service of the notice even if at the time of the assessment or reassessment the three years aforesaid have already elapsed : Provided further that nothing contained in this section limiting the time within which any action may be taken or any order, assessment or reassessment may be made shall apply to a reassessment made under section 19 or to an assessment or reassessment made in consequence of, or to give effect to any finding or direction containe....
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....s to be made against the component units of the family. In the meanwhile, one of the units had submitted returns of its income for the relevant assessment years ; but the Income-tax Officer took no action thereon. After the Appellate Tribunal's order the Income-tax Officer proceeded under section 34 of the Indian Income-tax Act, 1922, and required that unit to file returns for assessing its income which had escaped assessment. The assessee filed returns, and contended that the proceedings were time-barred. The Income-tax Officer rejected that contention ; and his order was upheld by the Appellate Tribunal on the around that the assessee became first assessable by the finding of the Tribunal that the parent family had been partitioned and th....
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.... were objected to by the assessee as barred by limatation under section 34(3) of the Indian Income-tax Act, 1922. The objection was overruled by the Income-tax Officer. The matter was pursued by the assessee; and it came before the Supreme Court. The Supreme Court accepted the view of the High Court that the second proviso to section 34(3) of the Act applied to the case, and the assessment proceedings were not time-barred. In doing so, the court said : " The question was of the assessment of the income of the business of the firm. The Income-tax Officer treated the father and the sons as a Hindu undivided family. On appeal, however, the Appellate Assistant Commissioner accepted their contention that they formed a partnership firm . It is....
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....the appellate order. That was a case to which the proviso squarely applied. The learned Government pleader also referred me to my decision in Ishwara Bhat v. Commissioner of Agricultural Income-tax. That decision has no application to the instant case, since the assessee sought to be proceeded against is a different person from the one concerned in the appeal, as pointed out above. It may also be incidentally observed that the above decision appears to have been overruled by a Full Bench of this court in I.T.R. Case No. 9 of 1968, in which the majority took the view that the Commissioner acting under section 34 of the Agricultural Income-tax Act must act within the period prescribed in section 35 for making a reassessment. The reasoning in ....