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Assessment of assessee by WTO in the status of individual, failure to provide proof of ancestral land, argument regarding status of HUF, objection to alteration of status without notice, legal position on altering status without notice, lack of notice by WTO, setting aside of assessments by AAC for subsequent years. Analysis: The judgment pertains to two appeals by the assessee for the assessment years 1972-73 and 1973-74 against the order of the AAC confirming the assessment by the WTO in the status of an individual. The primary issue revolves around the status of the assessee, initially filed as HUF but assessed by the WTO as an individual. The AAC's decision was based on the lack of evidence provided by the assessee to prove the lands were ancestral, leading to the rejection of HUF status. The assessee's counsel argued that the necessary evidence was in the income-tax record but could not be produced before the AAC. Additionally, a new legal position was raised regarding the alteration of status from HUF to individual without proper notice by the WTO. The argument emphasized that altering the status without notice violated natural justice principles. The Tribunal agreed with the assessee that the returns were filed as HUF, and the alteration was not made post-filing. Citing legal precedents, the Tribunal held that the alteration of status without notice was impermissible. The Tribunal found that no notice was given by the WTO regarding the change in status, rendering the alteration invalid. The AAC's failure to address this crucial aspect led to the setting aside of the combined order and a direction to the WTO to reassess after providing proper notice. The judgment also mentioned the setting aside of assessments for subsequent years, emphasizing the need for consistency in the orders. Ultimately, both appeals were allowed for statistical purposes, highlighting the procedural irregularities in the assessment process.
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