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TMI Blog1966 (1) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... ing on his separate business in the name and style of Messrs. Asharfi Lal Radhey Shiam. He says that he deposited the sum of Rs. 4,000 in that business. It is further said that in a partial partition, and the sum of Rs. 4,000 was divided between him and certain members of the family. On July 11, 1959, the petitioner entered into partnership with these members of the family and the sums received upon the division of Rs. 4,000 were introduced as capital by those members. It was alleged that the partnership took over the business of Messrs. Asharfi Lal Radhey Shiam and commenced to carry it on. In the assessment Order made by the Income-tax Officer against the petitioner as an "individual" for the assessment year 1960-61, the Income-tax Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax Officer and after considering the contentions raised in the revision application and the report of the Income-tax Officer and after perusing the record of the case, he dismissed the revision application by his order dated February 25, 1965. He also expressed the opinion that the claim of partial partition had been rightly rejected, that no partnership firm had come into existence and that therefore the business said to have been done. by the partnership had really been done by the petitioner in his individual capacity. In respect of the addition of Rs. 7,000 he observed : " Regarding the addition of Rs. 7,000 the assessee should have no grievance on merits as the addition was made on a provisional basis subject to rectifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extend this opportunity. The petitioner filed his revision application and a copy of it was sent to the Incotne-tax Officer for its comments thereon. In the report submitted by him, the Income-tax Officer merely set out his version of the case. I have been unable to discover any rule of law requiring the Commissioner to serve a copy of the report upon the assessee and to hear his submissions thereon. But although the Commissioner is not bound to afford this opportunity to an assessee, it is in the interest of fairplay and would conduce to a more effective administration of justice if a copy of such report was made available to the assessee before the revision application was disposed of. The Income-tax Officer has an opportunity to acquain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... included in his individual assessment, and that assessment is open to rectification when the share is finally calculated upon the determination of the total income of the firm. In the instant case, when both the Appellate Assistant Commissioner and the Commissioner had endorsed the view that the business had all along been carried on by the petitioner in his individual capacity and that no partnership firm had come into existence, no question arose of determining the profits on a provisional basis subject to rectification " when the accountsof the firm " fell to be examined subsequently. According to their finding, there was no firm at all. If the income had to be estimated, the estimate should have been made finally, and not provisional ..... X X X X Extracts X X X X X X X X Extracts X X X X
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