9911796707
TMI Blog1971 (11) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... mption that they are totally devoid of jurisdiction in the eye of law - - - - - Dated:- 1-11-1971 - Judge(s) : RAMAPRASADA RAO. JUDGMENT RAMAPRASADA RAO J. -For the assessment year 1946-47, the petitioner was assessed as an individual by the Income-tax Officer, Tiruchirapalli. It is not in dispute that this ended in no assessment, because there was no income. Some time later, it was discovered that the petitioner had had dealings in combination with others as an association of persons under the name and style of "V. Muthuswami Pillai Co" which had its commercial activity within the jurisdiction of the Income-tax Officer, Dindigul. The said officer (at Dindigul) on information about the association of the writ petitioner in the com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in dispute before me that such notices were issued and due enquiry was held by the Income-tax Officer when he revised his original order dated December 30, 1946. In the said enquiry, the other members of the quondam association of persons, such as Muthuswami Pillai and others, gave evidence before the Income-tax Officer, Tiruchirapalli. The petitioner himself was cross-examined by the other members of the association of persons and in that it was elicited that he had a share in the combine of the persons who made up the association of persons and that though an agreement was not written UP, yet, there was an understanding as between the members as to the shares in which they should enjoy the returns of the commercial activity. Finally, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the Commissioner is said to have informed the petitioner that he would "consider" the matter. This is beside the point, and not relevant. Ultimately, the impugned notice dated September 18, 1967, was issued by the Income-tax Officer, Dindigul. Obviously, this notice was issued, based upon the earlier order of this officer as against the association of persons, of which the petitioner had notice, and which became final, since the petitioner did not appeal against the notice under section 29 of the Income-tax Act, served on him and admitted to have been served on him. The Income-tax Officer, Dindigul, pursuant to his earlier assessment, which has become final in the eye of law as against "V. Muthuswami Pillai Co." called upon Messrs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e rules of adequate opportunity, the entire proceedings which followed are hit by the principles of natural justice. I shall come to the first point later. As regards the second point, it is settled law that the doctrine of natural justice cannot be approached in a doctrinaire spirit, but is purely dependent upon established and proved facts. Violation of the principles of natural justice is never assumed ; but has to be traced to existing and acceptable material, and can never be sustained, nor can it exist, in the abstract. The argument of Mr. Kesava Ayyangar is that, as the original assessment proceedings as against the association of persons was not made in his client's presence, there has been a failure of natural justice. This argum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n aliquot share therein, that Muthuswami Pillai and others were his associates and that the account books produced and scrutinised by the Income-tax Officer, Tiruchirapalli, disclosed the correct state of affairs. Therefore, for a second time when the petitioner had a full opportunity to disprove the case of the revenue, it was found that he was a member of the association of persons and that there is no escapement out of that finding. In this view of the matter, it cannot be said that the principles of natural justice are in any way violated, or that there has not been any effective opportunity given to the petitioner to prove his case that he was not a member of the association. Therefore, I am of the view that having regard to the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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