9911796707
TMI Blog2001 (2) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... he present case even though the income proposed by the Income-tax Officer to be taxed exceeded by over Rs. 1 lakh the income returned by the assessee ?" The dispute relates to the assessment year 1976-77. The factual position, as indicated in the statement of the case, is as follows : The assessee is an individual, who derived income from two house properties, from proprietorship business run in the name of S. R. Associates, and share income from a partnership firm, United Traders. The return of income for the assessment year was filed on July 14, 1976. The assessee declared his total income to be Rs. 51,930. A sum of Rs. 29,013 was declared to be his share income from the abovesaid partnership. During the assessment, the Income-tax O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time-barred. In other words, the assessee's stand was that the benefit of clause (iv) of Explanation 1 below section 153(3) had no application. Though the Commissioner of Income-tax (Appeals) granted relief on certain other heads, he did not accept the assessee's stand about non-applicability of section 144B of the Act. The matter was carried in further appeal before the Tribunal by the assessee. The stand, as taken before the Commissioner of Income-tax (Appeals), was re iterated before the Tribunal. Accepting the assessee's stand that for working out the variation in terms of section 144B(1) the share income was not relevant, the Tribunal allowed the appeal. It was noted that the assessee had no scope to raise any objection so far as varia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax Officer proposes to make, any variation in the income or loss returned which is prejudicial to the assessee and the amount of such variation exceeds the amount fixed by the Board under sub-section (6), the Income-tax Officer shall, in the first instance, forward a draft of the proposed order of assessment (hereafter in this section referred to as the draft order) to the assessee." The provision was inserted by the Taxation Laws (Amendment) Act, 1975, with effect from January 1, 1976. The amount fixed by the Board under sub-section (6) is Rs. 1 lakh. It is to be noted that so far as the share income of the assessee is concerned, the determination is done by the Assessing Officer of the firm wherein he is a partner. On determinati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of a partner without the firm's income being assessed, does not arise. Section 144B deals with variation, which is prejudicial to the assessee. As the language of the provision makes it clear, the variation provisions are applicable only in a case where the variation is prejudicial to the assessee. in' a case where the share income is determined, the assessee does not get a statutory forum for questioning the same, except to the extent provided by assailing the determination of total income/loss in the firm's case. The results of an appeal in the firm's case have only consequential effect in the firm's case. There fore, the intimation about the share income cannot be said to be pre judicial to a partner for the purpose of a variation, which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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