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Issues Involved: The judgment involves the following issues: (1) Valid assessment in the status of an individual when the return of income was filed in the status of a Hindu undivided family, and (2) Inclusion of the minor child's income in the father's income after initially including it in the mother's income.
Issue 1: Valid Assessment Status - Individual vs. Hindu Undivided Family The case pertains to assessment years 1979-80, 1980-81, and 1981-82. The Hindu undivided family underwent partial partition in 1973, and assessments for the subsequent years were completed in the status of the Hindu undivided family. The Commissioner of Income-tax set aside these assessments under section 263 of the Income-tax Act, directing fresh assessments in the status of an individual. The Tribunal upheld this decision, emphasizing that without proper notice and opportunity, there could not be a valid assessment in the status of an individual when the return was filed as a Hindu undivided family. Issue 2: Inclusion of Minor Child's Income The minor son's share income from a partnership firm was initially included in the mother's income. Subsequently, the Income-tax Officer included this income in the father's assessment after framing fresh assessments in the status of an individual. The Appellate Assistant Commissioner upheld this inclusion, but the Tribunal allowed the assessee's appeals. The Tribunal's decision was supported by legal precedents such as CWT v. J. K. Srivastava and Sons and CIT v. Associated Cement and Steel Agencies. The Tribunal's order was deemed legally sound, and the questions were answered in favor of the assessee and against the Department. The judgment highlights the importance of proper assessment procedures and the correct application of tax laws in determining the tax liabilities of individuals and Hindu undivided families.
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