2001 (1) TMI 207

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....ting the share of income as returned. Consequent to the order passed in the case of the firm on 27-6-1991, the share income of the assessees was also revised, adopting the correct share of profit from the firm and order under section 143(l)(c) of the Act was passed. In the above order, interest under section 234B of the Act was also levied in the case of both the assessees. 3. The assessees appealed questioning the jurisdiction of the Assessing Officer to pass order under section 143(1)(c) and also the levy of interest under section 234B of the Act. The Commissioner (Appeals) upheld the order passed by the Assessing Officer under section 143(1)(c) and also the levy of interest under section 234B. Aggrieved, the assessees are in appeal be....

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....IR 1970 SC 494 at page 503. It is further contended that section 143(1)(c) permits substitution only in cases where the communication under section 143(1)(a) in the case of the firm is made after filing of the return by the partners. 5. On the other hand, the learned departmental representative, Shri N.S. Raghavendra, placed strong reliance on the orders of the authorities below. He contended that the amendment brought about by the Finance Act, 1992, is only procedural and not substantive. Therefore, the Assessing Officer had all the powers to send intimation under section 143(1)(c) on 11-12-1995. 6. We have very carefully considered the rival submissions. We have also perused the material available on record. The main thrust of the a....

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....endment has been made effective from 1-4-1993. This amendment is not applicable to an assessment year prior to 1993-94 and is applicable only to assessment year 1993-94 and subsequent years. As pointed out earlier, this amendment has been made as a consequence of doing away with the assessment of share income of partners and instead taxing the same in the hands of the firm itself. If the argument of the learned counsel for the assessee is to be accepted it would lead to the conclusion that the Assessing Officer will have no jurisdiction in taxing the partners of a firm after 1-4-1993 for any of the earlier years. This, no doubt, is not the intention of the legislature. As pointed out earlier, the amendment to section 143(1)(c) made effectiv....