9911796707
TMI Blog1987 (6) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... was made on 25-4-1979. The Income-tax Officer proceeded to make order under section 155 of the Act so as to rectify the figure regarding income by way of share of profits from said firm so as to bring the same in conformity with the figure as per assessment order of the firm. The assessee pleaded that rectification proceeding be stayed till the disposal of application of the firm before the Settlement Commission. The Income-tax officer did not accept the said submission. He observed that the applicant before the Settlement Commission was the firm and not the assessee, who was partner of the firm. He accordingly, rectified the original assessment order by including the assessee's share in the assessed profits of the firm. 3. Before the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irm's income was not finally determined. 3. The learned Commissioner of Income-tax (Appeals) ought to have appreciated the fact that share income from the firm will be finally determined only when the Settlement Commission finally dispose of the application of the firm." 4. The assessee did not appear before us. We have heard the learned departmental representative and considered the point in controversy. The point involved is one of law. The point is whether the Income-tax Officer has jurisdiction to rectify the assessment order of a partner under section 155 of the Income-tax Act, 1961 on the basis of the assessed income of the firm for settlement was pending before the Settlement Commission. 5. Section 245 C (1) lays down that an asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. It is in respect of the said case of the assessee who had made the application under section 245 C (1) that the Settlement Commission assumes exclusive jurisdiction to exercise the powers and functions of the Income-tax authority under the Act. In the present case, the assessee who has made an application under section 245 C (1) is the firm of M/s. S. P. Builders. Consequently, it is in respect of the case of the firm that Settlement Commission has exclusive jurisdiction to exercise powers and perform the functions of the Income-tax authority under the Act. We are concerned with the assessee, Mr. Oomer Ahmed, who is the partner of the said firm. The assessee before us has not made an application under section 245 C (1) of the Act. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that once the case of the firm was admitted by the Settlement Commission, the Settlement Commission would have exclusive jurisdiction to perform the functions of the income-tax authority in the case of all the partners of the firm. As already stated, the firm is a separate assessable entity apart from the partners and since the application under section 245 C has been made by the firm and not by the partners, the Settlement Commission would not have exclusive jurisdiction to perform the functions of income-tax authority in the case of partners. One of the grounds raised in the memo of appeal is that the Income-tax Officer should not have exercised his powers under section 155 of the Act till the firm's income was finally determined by the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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