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TMI Blog1965 (10) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... had after annulling the assessment in the case of Ambala Flour Mills ? (3) Whether, on the facts and in the circumstances of the case, the appeals filed by Shri Debi Parshad were maintainable in law?" The first two questions were referred as per the statement of the case dated 24th November, 1961, while the third question was referred in pursuance of an order made by this court. The statement relates to the assessment years 1950-51, 1951-52 and 1952-53, and the assessee is the Ambala Flour Mills, Ambala. The Ambala Flour Mills was previously a partnership concern consisting of three partners Balkishan, Debi Parshad and Jairam Dass. On 29th April, 1948, Jairam Dass filed a suit for dissolution of partnership and rendition of accounts a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax Officer had been set aside, the Income-tax Officer made an assessment on 15th August, 1958, on a total income of Rs. 1,12,962. The status of the assessee was mentioned "as an association of persons". For the year 1951-52, a return of income was filed by Debi Parshad in the status of "an unregistered firm". The Income-tax Officer made an assessment in the status of "an association of persons" and assessed the income at Rs. 2,62,768. For the year 1952-53, the return of income was filed by Debi Parshad on 7th January, 1953, in the status of a "Hindu undivided family". The assessment was made by the Income-tax Officer in the status of "an association of persons" and the income was assessed at Rs. 57,315. The Income-tax Officer, while holdi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from this business should be assessed in this year in the hands of the family of Shri Debi Parshad. As the assessment has been annulled on the question of status it is not necessary for me to go into the merits of the case about the additions made by the Income-tax Officer." An appeal was then filed on behalf of Ambala Flour Mills by Debi Parshad before the Income-tax Appellate Tribunal, and it was contended in the appeal that the Appellate Assistant Commissioner had no jurisdiction to hold that the entire business of Ambala Flour Mills belonged to Debi Parshad. It was further urged that the Appellate Assistant Commissioner could not give a direction to the Income-tax Officer to make the assessment on Debi Parshad when the original assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , as the returns on behalf of the assessee were filed by Debi Parshad and he conducted proceedings on behalf of the assessee, we fail to understand as to how the appeals filed on behalf of the assessee by Debi Parshad in respect of the assessment could be held to be not maintainable in law. We would, therefore, answer the first question in the negative and the third question in the affirmative. So far as the second question is concerned the matter is concluded by a recent decision of the Supreme Court in Commissioner of Income-tax v. Kanpur Coal Syndicate. The question, which arose for determination in that case, was whether when the Income-tax Officer in his discretion assessed an association of persons to income-tax, the Appellate Assis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had power to set aside the Income-tax Officer's assessment against the association and to give consequential and ancillary directions to the said officer to assess the individuals. On appeal to the Supreme Court, Subba Rao J., who spoke for the court, referred to section 31 of the Income-tax Act, which deals with the powers of the Appellate Assistant Commissioner in appeal, and observed: " Under section 31(3)(a) in disposing of such an appeal the Appellate Assistant Commissioner may, in the case of an order of assessment, confirm, reduce, enhance or annul the assessment; under clause (b) thereof he may set aside the assessment and direct the Income-tax Officer to make a fresh assessment. The Appellate Assistant Commissioner has, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any difference to the applicability of the dictum laid down in the above case about the nature and extent of the powers of the Appellate Assistant Commissioner in appeal. As those powers are of a comprehensive and plenary nature and are conterminous with those of an Income-tax Officer, there is, in our opinion, no bar to an Appellate Assistant Commissioner making a direction while setting aside an order of assessment of an association of persons, that the members should be assessed individually. Reference has also been made by Mr. Tuli to the case of N. Naganatha Iyer v. Commissioner of Income-tax, wherein it was held that a junior member of a Hindu undivided family should be deemed constructively to be a party to a decision to which the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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