9911796707
TMI Blog1968 (2) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... der of the Tribunal dated October 19, 1961. The Tribunal made that order in the following circumstances. The assessee originally was a member of a Hindu undivided family. There was a partition on March 11, 1939. Thereafter, the assessee, his wife and three sons, the first of whom was a major and the last two were minors at the relevant time, constituted a partnership, the minors having been admitted to the benefits of the partnership. The assessee was assessed to income-tax for the assessment year 1951-52, treating the firm as an unregistered one. In the assessment order, his share income was shown as Rs. 29,124 but, as a loss was returned with regard to the unregistered firm, the assessee was not taxed. Against the order of the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecide the ground relating to section 35(5). He considered that the order of the Income-tax Officer was passed pursuant to the order of the Tribunal under section 66(5) and, that being the case, no question of limitation would also arise. He stated : "This order would, in my opinion, cover all the modifications necessary in the hands of the partners in the manner done by the Income-tax Officer." Being of that opinion, the first respondent also considered that even for the purposes of section 35(5), the starting point of limitation would be the final order of the Tribunal under section 66(5). We are of the view that in this petition for certiorari to quash the order of the Commissioner, the only question for decision is whether the fir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion made by the Tribunal does not lend itself to the construction placed upon it by the first respondent. The Tribunal itself made explicit in its order by specific reference to the contention of the revenue before it and opined that in an order under section 66(5), it could not make a direction for inclusion of the income under section 16(3). Having said that, the Tribunal could certainly not have intended by the last sentence in its order that by way of consequential modification, the Income-tax Officer should include the income under section 16(3) in the petitioner's assessment. Mr. Balasubrahmanyan, with his usual ability, attempted to justify the first respondent's order. He referred us to sub-sections (4) to (6) of section 33 in co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the High Court. If the High Court has agreed with the view of the Tribunal, the appeal may be disposed of by a formal order; if the High Court disagrees with the Tribunal on a question of law, the Tribunal must modify its order in the light of the order of the High Court; if the High Court has held that the judgment of the Tribunal is vitiated, because it is based on no evidence or that it proceeds upon conjectures, speculation or suspicion, or has been delivered after a trial contrary to rules of natural justice, the Tribunal would be under a duty to dispose of the case conformably with the opinion of the High Court and on the merits of the dispute. In all cases, however, opportunity must be afforded to the parties of heard. " Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal's jurisdiction in disposing of an appeal after receipt of an order of the High Court in a reference. We are, in this case, as already indicated, concerned with what precisely the Tribunal meant and directed. On that question, we have no doubt that the Tribunal made no direction in respect of section 16(3). It is true the Tribunal directed the Income-tax Officer to make modifications consequential to the grant of registration. It is hardly necessary to point out that inclusion of the income under section 16(3) in the petitioner's assessment is by no means a consequence of registration. Registration or no registration, in either case, the income under section 16(3) could be included in the petitioner's assessment, though there migh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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