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TMI Blog1971 (12) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... persons ". In Part VI of the return in Form A the following names had been put in : (1) M. M. Palanichami Nadar, (2) N. Seeniammal (wife of No. 1), (3) P. Mathurai Veeraswami Nadar, (4) S. Ponnammal (wife of No. 3), and (5) P. Palanichami Nadar (younger brother of No. 3). But the shares of the above persons had not been noted. Notices under sections 22(4) and 23(2) of the Indian Income-tax Act, 1922, dated April 14, 1953, were issued to M. M. Palanichami Nadar and the return was disposed of by the Income-tax Officer by noting in his order sheet " N.A. " on January 28, 1954. On August 9, 1957, a notice under section 34 was issued. In response to this notice, a return was filed but the status whether it was a " firm " or an " association of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ree returns were filed under protest. These returns were one by M. M. Palanichami Nadar, the other by Mathurai Veeraswami Nadar and the third by P. Palanichami Nadar. These returns did not mention the status but disclosed the income of Rs. 51,528. In the return submitted by Mathurai Veeraswami Nadar, under Part III he had given the names of himself, his wife and four sons, M. M. Palanichami Nadar and P. Palanichami Nadar and the shares against each had also been given. The Income-tax Officer completed the assessment on February 29, 1960, in the status of an " unregistered firm ". He computed the income from Chandra Bus Lines and Chandra Bus Transport at Rs. 58,673, before allowance of earned income relief. The circumstances leading to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l material facts and since the returns filed on October 1, 1952, had been disposed of, it was open to the Income-tax Officer to issue notices under section 34. On an application filed by the assessee under section 66(1), the Tribunal has referred the following question for determination : " Whether, on the facts and in the circumstances of the case, the re- assessment on the assessee under section 34 for the assessment years 1950-51 and 1951-52 are valid ? " The learned counsel for the assessee contended that the returns filed on October 1, 1952, had not been disposed of and that, therefore, section 34 could not be invoked. It was not the case of the assessee before us that if there was a, termination of the proceedings in respect of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1952, should be treated as returns submitted by an " unregistered firm ". In support of his contention that the returns submitted on October 1, 1952, remained undisposed of and that, therefore, section 34 could not be invoked, the learned counsel for the assessee relied on the decision in Commissioner of Income-tax v. M. K. K. R. Muthukaruppan Chettiar. In that case the facts were these : The father, his son and two grandsons formed a Hindu undivided family, which was assessed as such till the end of the assessment year 1948-49. In the proceedings for the assessment year 1949-50 the father claimed that there was a partition between the father on the one hand and the son and grandsons on the other and, following up this claim, pursuant to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... could be seen from the facts of that case, the returns by the son and the grandsons were on the basis that there was a partition between the father and the son and grandsons and that, therefore, they were valid returns by the assessee. The Supreme Court, on a consideration of the facts and circumstances of that case, came to the conclusion that there was no disposal of the voluntary returns made by the assessee and that, therefore, section 34 could not be invoked. This decision is clearly distinguishable as in the present case the returns were not by the assessee who is an unregistered firm. Therefore, this is clearly a case falling under section 34(1) of the Act. We are also of the view that the proceedings in respect of the returns submi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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