1974 (9) TMI 28

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....irm as on January 19, 1947. The assessees were allotted shares in that company in proportion to their interest in the partnership. The assessees were in receipt of salary and dividends from the company. For the assessment years 1947-48 to 1953-54 the assessees submitted their returns as individuals disclosing the receipt of salary and dividends from the company. But the Income-tax Officer did not accept the changed state of affairs and invoking the provisions of section 44D of the Indian Income-tax Act, 1922, deemed the partnership to have continued in existence. In this view, the assessment was made on the firm as if it had continued to exist for the assessment years 1947-48 to 1953-54. There were appeals by the firm. The Tribunal took the....

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....s were completed including these amounts received as salary, bonus and dividends in the income chargeable to tax. The assessee filed an appeal to the Appellate Assistant Commissioner contending that the action of the Income-tax Officer was without jurisdiction, that by the time the original assessment was made on December 30, 1960, the Tribunal had held that section 44D was not applicable and, therefore, that information was available to him and there was no fresh information that came to the possession of the Income-tax Officer subsequent to his order dated December 30, 1960. The Appellate Assistant Commissioner held that the High Court's order dated September 26, 1961, confirming the Tribunal's view that section 44D is not applicable and ....

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....r the assessee would contend is that if at all the view that section 44D was not applicable was there in the possession of the Income-tax Officer even at the time when the original order was made on December 30, 1960, and, therefore, when lie issued the notice subsequently it would only amount to a change of view which will not clothe him with any jurisdiction to proceed under section 147(b). But, as already pointed out, there was a reference to this court pending at the instance of the revenue on the question of applicability of section 44D, and, therefore, the Income-tax Officer considered that the view of the Tribunal had not become final and binding on him and that, therefore, he would proceed on his earlier view that section 44D was ap....