1958 (4) TMI 114

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..... in a very bad case, there is always something to be said for the Taxing Department. In this case nothing whatever can be said for the action they have taken. What is challenged by this petition is a notice issued under section 34 on the 27th March, 1957, for the assessment year 1948-49. This notice would only be valid if it fell under section 34(1)(a), and the contention of the Department is that .....

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..... e very assessees as a different assessable entity, and the amazing argument put forward is that the registered firm made a return but this particular entity has not made a return and, therefore, section 34(1)(a) is applicable. In putting forward this argument what is forgotten and overlooked is that although the status of the assessee may be different, the assessee has made a return, the four part .....

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..... be that this firm would not be recognised by the Association. From this fact the Department draws the extraordinary inference that the partnership is illegal and because an illegal partnership was assessed to tax, it is now open to them to proceed to assess the partners as an association of persons. The Department never paused to think as to why a partnership which is otherwise legal, ceases to b .....

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