1984 (8) TMI 98

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.... appealed to the Commissioner (Appeals). Before him, it was urged that some of the partners have already been assessed to tax on their respective share income from the firm. Once the share income is assessed in the hands of the partners, it is no longer open to the ITO to make an assessment on the firm itself in the status of an unregistered firm. Reliance was placed on the decision of the Supreme Court in CIT v. Murlidhar Jhawar and Purna Ginning & Pressing Factory [1966] 60 ITR 95 as well as the Board's circulars issued in 1966 and 1972. The Commissioner (Appeals) held that it is undisputed that in the case of one of the partners, namely, Shri Manmulji, the share income of Rs. 11,884 from the firm was included in his assessment made on 7-....

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....earned departmental representative supported the orders of the lower authorities. He submitted that the decision reported in Murlidhar Jhawar and Purna Ginning & Pressing Factory's case cannot be applied to the provisions of the Income-tax Act, 1961 ('the Act'). He placed reliance on two decisions. 3. We have considered the rival submissions. It is clear from the order of the Commissioner (Appeals) as well as from the copies of the assessment orders which were placed before us that the partners, namely, Shri Manmulji and Smt. Sitadevi, have been assessed on their respective share income from the firm as per the assessment orders dated 7-2-1981 and 23-3-1981, respectively. The assessment order on the assessee-firm in the status of an unre....

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....x Department. 4. The decision of the Supreme Court in the case of Murlidhar Jhawar and Purna Ginning & Pressing Factory has been followed by the Gujarat High Court in Laxmichand Hirjibhai v. CIT [1981] 128 ITR 747 as well as by the Bombay High Court in CIT v. V.H. Sheth [1984] 148 ITR 169, wherein it was held that the above decision of the Supreme Court would be equally applicable to the assessments made under the Act. Similar view has been taken by the Madras High Court in CIT v. Blue Mountain Engg. Corpn. [1978] 112 ITR 839, the Patna High Court in CIT v. Pure Nichitpur Colliery Co. [1975] 101 ITR 79, the Calcutta High Court in Ramanlal Madanlal v. CIT [1979] 116 ITR 657 and the Andhra Pradesh High Court in Ch. Atchaiah v. ITO [1979] 1....