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TMI Blog1988 (4) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... equested for an order under section 171 of the Act also. It is to be noticed that the partial partitions in all these cases are said to have taken place between January 1, 1979, and March 31, 1979, during the relevant previous year for the assessment year 1979-80. In the case of two petitioners, after enquiry, an order under section 171 was also passed and assessment completed, while in the case of two others, the assessment was yet to be completed. However, after coming into force of the Finance (No. 2) Act of 1980, the Income-tax Officer decided to ignore the order passed under section 171 and also to ignore the partial partition in these cases. The prayer in these writ petitions is for a declaration that the amendment inserting sub-secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e or after the 18th day of June 1980, being the date of introduction of the Finance (No. 2) Bill, 1980, shall be null and void ; (b) such family shall continue to be liable to be assessed under this Act as if no such partial partition had taken place ; (c) each member or group of members of such family immediately before such partial partition and the family shall be jointly and severally liable for any tax, penalty, interest, fine or other sum payable under this Act by the family in respect of any period, whether before or after such partial partition ; (d) the several liability of any member or group of members aforesaid shall be computed according to the portion of the joint family property allotted to him or it at such partial ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ining the various provisions in the Bill, etc., we do not consider it necessary to go into the question of the constitutional validity of sub-section (9), as we are of the view that the said provision does not apply to the assessment year 1979-80 with which the petitioners' cases are concerned. Section 4(1) of the Income-tax Act which provides for the basis of the charge reads as follows : "4. (1) Where any Central Act enacts that income-tax shall be charged for any assessment year at any rate or rates, income-tax at that rate or those rates shall be charged for that year in accordance with, and subject to the provisions of, this Act in respect of the total income of the previous year or previous years, as the case may be, of every pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsequent years." After the Finance (No. 2) Act, 1980, was passed, the Central Board of Direct Taxes issued Circular No. 281 dated September 22, 1980, containing the explanatory notes on the provisions relating to direct taxes in the Finance (No. 2) Act of 1980. Paras 31.1 to 31.4 deal with this amendment. Para 31.4 reads as follows : "31. 4. This amendment has come into force with effect from 1st April, 1980, and is accordingly applicable in relation to the assessment year 1980-81 and subsequent years." The aforesaid material clearly indicates that sub-section (9) is deemed to be on the statute book from April 1, 1980, and is applicable for the assessment year 1980-81 onwards. "Assessment year" is defined in section 2(9) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd provision made to ignore earlier partial partitions. For the earlier assessment years, there is no question of fabrication due to the knowledge of the amending Bill because the returns must have been filed in an earlier year. The date December 31, 1978 may create classification among assessees for the assessment year 1980-81, but, we are not concerned with the same in this case, as we are concerned with the question whether the amendment applies to the assessment year 1979-80. In view of the position that the amendment does not apply to the assessment year 1979-80, the Income-tax Officer is not justified in invoking sub-section (9) of section 171 for ignoring the partial partition claimed by the petitioners during the assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X
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