9911796707
|
Home
Issues Involved:
The issue involves the assessment made by the Income-tax Officer in the status of an individual when the return was filed in the status of a Hindu undivided family, without giving any notice to the assessee regarding the change in status. Judgment Details: The reference under section 256(1) of the Income-tax Act, 1961, was made by the Revenue to address the question of law regarding the assessment made by the Income-tax Officer in the status of an individual, which was challenged by the assessee who filed returns as a Hindu undivided family for the assessment year 1971-72. The Income-tax Officer completed the assessment in the status of an individual without giving any prior notice to the assessee about the change in status, despite the returns being filed as a Hindu undivided family. The Appellate Assistant Commissioner upheld this decision, but the Tribunal, on further appeal, ruled in favor of the assessee, emphasizing the necessity of providing an opportunity to the assessee to contest any adverse order. The Tribunal's decision was based on the fundamental principle that a person must have the opportunity to contest an adverse order before it is made. The failure to provide notice to the assessee before changing the assessment status from Hindu undivided family to individual was deemed fatal to the assessment process. The Court found no legal provision allowing for such a change in assessment status without prior notice to the assessee. Therefore, the Tribunal's decision was upheld, and the reference was answered against the Revenue in favor of the assessee, affirming that the Tribunal's view was justified.
|
