9911796707
TMI Blog1980 (1) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment made against an 'individual' under s. 18(4) has been reopened under s. 19 of the act, the proceedings are pending against the 'individual' only and not against the Hindu undivided family of which he is the karta or ejaman? (ii) Whether, on the facts and in the circumstances of the case, the order of assessment completed against the karta or ejaman of a Hindu undivided family is vitiated, if it is finalised after reopening an order of assessment under section 19 of the Agricultural Income-tax Act against him as an individual? (iii) Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in holding that as no notice under section 35 as been issued calling upon the karta to file a return of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax and Sales Tax, Special, Kozhikode, who issued a pre-assessment notice to the assessee on March 6, 1967, purporting to assess him afresh under s. 19. By the said notice, the IAC proposed to finalise the assessment of the assessee under s. 18(4) of the Act. It was, however, stated in the notice that since the respondent herein was a karta of the Chullikana, HUF, the status claimed in his return as " individual " was not correct or acceptable and consequently the entire income of the family was assessable in his hands as karta of the HUF. On receipt of the aforesaid reassessment notice, the assessee filed petition, wherein he questioned, inter alia, the legality and propriety of assessing him as the karta of the HUF in the course of reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... status of karta of an HUF while effecting a reassessment in proceedings under s. 19 of the Act, when the original assessment was made against the assessee in his status as " individual ". It was further held by the Tribunal that on the death of the father, Narasimha Bhat, which had taken place subsequent to the coming into force of the Hindu Succession Act, the HUF had become automatically disrupted by virtue of the operation ofthe provisions of s. 6 of the said Act and thereafter there could be no question of the assessee occupying the status of karta of the HUF. On both the aforesaid grounds, the Tribunal held that the assessment made by the IAC could not stand. Accordingly, it set aside the order of assessment passed by the IAC and remi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss I of the Schedule or a male relative specified in that class who claims through such female relative, the interest of the deceased in the coparcenary property shall devolve by testamentary or intestate succession under the said Act and not by survivorship. It was further clearly laid down by the said ruling that the carving out of the share of the deceased will not affect the continuance of the joint family or bring about its disruption so far as the surviving members are concerned and that they will continue to constitute a joint Hindu family with the seniormost member functioning as its karta. This decision was subsequently followed by another Division Bench of this court and the same principle was reiterated in the judgment dated 11th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ities are totally different. His liability to be taxed as an " individual " is distinct and different from his liability to be taxed on behalf of his HUF. The individual and the HUF are totally different units of taxation and they are two different assessees-see CIT v. Rameshwarlal Sanwarmal [1971] 82 ITR 628(SC). It cannot, therefore, admit of doubt that in reassessment proceedings taken under s. 19 against a person who had been originally assessed in the status of an " individual " he cannot be " reassessed in the capacity of the karta of an HUF. The reason is clear, namely, that reassessment "necessarily implies that there had been an earlier assessment against the same person. The individual and the joint family being distinct and diffe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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