TaxTMI 
TaxTMI 
2005 (2) TMI 58
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....and that the provisions of section 155(1) had no application to the instant case?" The reference relates to the assessment year 1971-72. The assessee-respondent was one of the partners in M/s. Sanjai Engineering Corporation in the assessment year 1971-72 in question. M/s. Sanjai Engineering Corporation was initially assessed for the relevant assessment year as an unregistered firm (URF). However, in appeal filed under section 184(7), it was held that the said firm is entitled for registration under the Income-tax Act and the order was passed accordingly. The assessment for the assessment year in question was completed on October 30,1976, in respect of the assessee wherein his share from the said firm was taken as "unregistered firm". There....
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....assessment or reassessment of the firm nor it was a case of any reduction or enhancement made in the income of the firm." Heard Shri Shambhu Chopra, learned standing counsel for the Department. None appeared on behalf of the assessee in spite of notice sent by the office. Section 155 of the Act as it stood at the relevant time, its relevant portion is quoted below: "Section 155. Other amendments.-(1) Where, in respect of any completed assessment of a partner in a firm it is found- (a) on the assessment or reassessment of the firm, or (b) on any reduction or enhancement made in the income of the firm under this section ... or (c) ..., that the share of the partner in the income of the firm has not been included in the assessment of the....
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....pter IV of the Indian Income-tax Act, 1922, dealing with the subject "deductions and assessment" and has held that the expression "assessment" used in these sections is not used merely in the sense of computation of income and there is no ground for holding that when by section 44, it has declared that the partners or the members of association shall be jointly and severally liable to assessment, it is only intended to declare the liability to computation of income under section 23 and not to the application of the procedure for declaration and imposition of tax liability and the machinery for enforcement thereof. The Supreme Court in the case of CIT v. Bhikaji Dadabhai and Co. [1961] 42 ITR 123 has quoted the following observation of the ....
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....e proceedings for assessment. Further assistance can be drawn from the scheme of the Act itself. Section 155 is in Chapter XIV of the Act. The heading of said Chapter is "procedure for assessment". Chapter XVI of the Act provides special provisions applicable to firms. Section 182 deals with the assessment of registered firms and section 183 with the assessment of unregistered firms. Under section 182, after assessing the total income of the registered firm, the income-tax payable by the firm shall be determined and the share of each partner in the income of the firm shall be included in his total income and assessed to tax accordingly. The apportionment of the share of the partner in the income of the firm is clearly a part of the assessme....
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....nal assessment was completed in which the share from M/s. Sanjai Engineering Corporation was taken as "unregistered firm" and rebate under section 86 was withdrawn after treating it as a registered firm. The Tribunal was not justified that there was no assessment or reassessment of the firm and the provisions of section 155 had no application. We could lay our hands on a judgment of the Kerala High Court in the case of CIT v. P.K. Aboobacker [2002] 254 ITR 51. In this case the firm was treated as an unregistered firm but on revision under section 263, the Commissioner directed to treat the firm as registered one. An argument was raised that when power under section 155(1)(a) and (b) was exercised by the Income-tax Officer to amend the inco....