1983 (1) TMI 39

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....J.-In this reference under s. 256(1) of the I.T. Act, 1961, at the instance of the Revenue, the following two questions are referred. " (1) Whether, on the facts and in the circumstances of the case, when the return of income had been filed by the firm and the assessment proceedings went on in the case of the firm, the assessment made in the status of an association of persons was legal ? ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of income for the assessment year 1972-73 in the status of a firm and submitted deed of partnership for registration under s. 185 of the I.T. Act, 1961. The ITO did not accept the genuineness of the firm and, therefore, refused to grant registration. At the same time, he made a protective assessment taxing the income in the said business in the status of an association of persons. Against these or....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....) of the I.T. Act, 1961, requesting registration were also filed. Similar orders were passed once again by the ITO. The assessee filed appeals before the AAC contending that the assessment in the status of an association of persons was not legal. The Department filed appeals before the Tribunal, which held, vide a common order dated July 14, 1977, that if the return was submitted in the status of ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....irm, and no notice to the association of persons was issued. Therefore, even if it is correct to make assessment in certain status, such assessment cannot be made in relation to proceedings in an incorrect status. This, in our view, is the root of the controversy. Our opinion, therefore, is that the Tribunal was correct in quashing the assessment made by the ITO in the status of an association of ....