TaxTMI 
TaxTMI 
2001 (11) TMI 53
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....ficer to assess the firm after assigning it the status of a registered firm as provided under section 183(b) of the Act. There was also a direction to reconsider the question of depreciation. We are not concerned with that aspect here. The Assessing Officer, pursuant to the direction of the Commissioner of Income-tax issued under section 263 of the Act, completed the assessment Of the firm. Thereupon, he issued notice to the respondent herein under section 155 of the Income-tax Act proposing that the share of income of the respondent in the firm be properly included in the assessment of the respondent under the Income-tax Act. No objection was filed by the respondent to that notice. But in response to the notice the assessee appeared bef....
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....l also referred to the decision in Second Addl. I.T.O. v. Atmala Nagaraj [1962] 46 ITR 609 (SC), in support of its conclusion that section 154 of the Act has no application. It is being aggrieved by the decision of the Tribunal that the Revenue has come up with these appeals. This court admitted these appeals on the following substantial questions of law: "1. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that rectification under section 155(1)(b) is not permissible? 2. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that no rectification of the assessment of the assessee is permissible under section 154 of the Income-tax Act? 3....
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.... the firm and had not touched the orders of assessment against the partners and in view of this, the Assessing Officer did not get any authority to reopen the assessments of the partners and to complete the assessment afresh. Counsel submitted that an assessment made pursuant to an order under section 263 of the Act was not a regular assessment and consequently section 155(1)(a) could not also be invoked. According to him section 155(1)(b) also could not be invoked in view of the fact that there was no reduction or enhancement in the assessment of the firm but only a change in the status of the firm. In our view, when the Commissioner of Income-tax directed, in exercise of his power under section 263 of the Income-tax Act, to invoke sect....
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.... that neither the Commissioner of Income-tax nor the Appellate Tribunal has property adverted to the relevant aspects while taking the view that the Assessing Officer was not justified in making a fresh assessment on the respondent as a partner of the firm which was directed to be assigned the status of a registered firm by the Commissioner of Income-tax in exercise of his power under section 263 of the Act. We find from the order of the Assessing Officer that the respondent through his counsel submitted that the assessee had no objection to adopt the correct share of income and to complete the assessment when the notice under section 155 of the Act was issued to him. Therefore, it is obviously an agreed assessment. It is thereafter that....