TaxTMI 
TaxTMI 
1988 (6) TMI 24
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....the erstwhile Hindu undivided family (HUF). The facts of the case in brief are as follows : Kenche Gowda, his two sons, Makappa and Kumar, constituted a Hindu undivided family which was assessed in that status up to the year 1977-78. The Hindu undivided family became divided and properties partitioned by metes and bounds on March 15, 1977. The Assessing Officer accepted the said partition and for the years 1978-79 and 1980-81, the divided coparceners filed separate returns which included their share in "Coffee back pool payments", relating to coffee crop supplied by the erstwhile Hindu undivided family to the Coffee Board prior to the date of partition among them. The Assessing Officer assessed them separately on the basis of the retu....
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....ded family which had ceased to exist and had not been assessed for the years 1979-80 and 1980-81 at all and hence there was no order in respect of the erstwhile Hindu undivided family for invoking the powers of revision. It was further submitted that the Explanation to section 30(2) applies only to the crops harvested and not disposed of prior to the partition and not to a situation as in the present case where the crops had not only been harvested but also disposed of before partition and hence the order of the Commissioner cannot be sustained. Further, it is submitted that the Hindu undivided family, in respect of which revisional proceedings had been initiated, not being in existence, no assessment could be made, much less would a revisi....
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.... must be deemed to have continued even though partition had been recognised by the Assessing Officer in respect of the income attributable to crops harvested prior to the partition. There is no doubt that the Revenue can initiate proceedings for reassessment if the conditions laid down therefor are complied with against a person on the ground that the income, though it has been assessed in the hands of another, has escaped assessment in his hands. This principle could be extended to apply to the case of a Hindu undivided family the income of which has escaped assessment. The assessment in the hands of a karta, in his individual assessment, will not militate against the jurisdiction of the Assessing Officer to take proceedings for reasses....
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....hould not trench upon the powers which are expressly reserved to the assessing authority under section 12A of the Act. The Deputy Commissioner, in exercise of his revisional jurisdiction, should not ignore that limitation." Hence, the contention of the Revenue on this aspect has got to be rejected. Now, as regards the second question raised, the question that falls for consideration is as to the applicability of section 30 and the Explanation thereto. Section 30 of the Act provides that at the time of making an assessment, if any claim is made that the Hindu undivided family hitherto assessed in the undivided status is now divided and that a partition has taken place among the coparceners, the Assessing Officer has to make an inqui....
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....at the coffee crop has been "disposed of" for purposes of the proviso. Admittedly, the coffee crop had been harvested and disposed of prior to partition by the petitioner by supply to the Coffee Board as contemplated under section 25 of the Coffee Act. Thus, the conclusion is irresistible that the proviso has no application to the instant case at all. Even so, learned counsel for the Revenue contended that in view of sub-section (2) of section 30 of the Act and the proviso thereto, the Hindu undivided family which had harvested the crop prior to partition received any income in any subsequent year after the partition, the assessment must be made on the individual although the income is attributable to the Hindu undivided family. But that....