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Issues:
1. Assessment in the status of an association of persons instead of tenants-in-common. 2. Deletion of section 3(3) of the Act and its retrospective effect. 3. Authority's power to change the status of the petitioner. 4. Necessity of filing a fresh return in changed circumstances. 5. Different tax implications for association of persons and tenants-in-common. Analysis: 1. The petitioner was aggrieved by being assessed as an association of persons instead of tenants-in-common. The assessing authority proposed this change without directing the petitioner to file a fresh return, leading to the inclusion of additional income in the new status. 2. Section 3(3) of the Act, allowing assessment as tenants-in-common, was deleted retrospectively. The High Court noted that the petitioner's original return in the status of tenants-in-common was valid at the time of filing, and the law change could not have been foreseen. 3. The Court found that the assessing authority unilaterally changed the petitioner's status without allowing them to declare their preferred status through a fresh return. The petitioner's objections were rejected, leading to the assessment as an association of persons. 4. The Court disagreed with the Tribunal's reasoning that no fresh return was necessary, emphasizing that the petitioner should have been given the opportunity to choose their status post the retrospective law change. Denying the petitioner the chance to file a fresh return was deemed a denial of opportunity. 5. The judgment highlighted the different tax implications for association of persons and tenants-in-common, emphasizing the need for the petitioner to have the opportunity to choose the status for taxation purposes. The Court set aside all previous orders and allowed the petitioner to file a fresh return within six weeks to determine their status in accordance with the law.
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