1982 (9) TMI 77 - AT - Income Tax

Summary

Issues:
- Inclusion of wife's share from a firm in the husband's assessment
- Application of section 154 for rectification of assessment
- Interpretation of High Court decisions on similar issues

Analysis:
The judgment revolves around the inclusion of the wife's share from a firm in the husband's assessment and the application of section 154 for rectification of assessment. The appellant contended that the issue was debatable due to varying High Court opinions. However, the departmental representative argued that the Allahabad High Court's decision was binding in the state, making rectification under section 154 necessary. The Tribunal agreed with the departmental representative, emphasizing the binding nature of the High Court decision in the state.

Regarding the appellant's second contention that the wife's share from a different firm should not be clubbed with the husband's share, the Tribunal disagreed. It held that since the husband was a partner in both firms, the wife's share from the firm where she was also a partner should be included in the husband's individual assessment. The Tribunal deemed the issue of clubbing income irrelevant.

The appellant's third submission, questioning the ITO's authority to rectify the assessment for the relevant year, was also dismissed by the Tribunal. It clarified that the principle of res judicata does not apply to income-tax proceedings, and the ITO's failure to rectify assessments for subsequent years did not preclude rectification for the year in question.

Ultimately, the Tribunal upheld the order of the ITO, confirming the inclusion of the wife's share in the husband's assessment. The appeal was dismissed, concluding the case.