COMMISSIONER OF INCOME TAX Vs. KAPOOR CHAND SRIMAL
LAWS(APH)-1971-6-22
HIGH COURT OF ANDHRA PRADESH
Decided on June 30,1971

COMMISSIONER OF INCOME TAX Appellant
VERSUS
KAPOOR CHAND SRIMAL Respondents

JUDGEMENT

Sriramulu, J. - (1.) At the instance of the Commissioner of Income-tax, Andhra Pradesh, Hyderabad, the following two questions of law have been referred to this Court ,for our decision, under section 66 (1) of the Indian Income-tax Act of 1922, by the Hyderabad Bench of the Income-tax Appellate Tribunal. "(1) Whether on the facts and in the circumstances of the case, the assessments made by the Income-tax Officer on the Hindu undivided family of Sri Kapoorchand Shrimal for the years under reference, without passing an order under section 25-A were valid in law ? (2) Whether on the facts and in the circumstances of the case, the sum of Rs. 42,009 was a trading loss deductible in the assessment for the year 1958- 59?"
(2.) The material facts, so far as they are relevant for answering the above questions, may briefly be stated. The assessment years concerned are 1955- 56, 1957-58 to 1961-62, the relevant accounting years being the years ending Deepavali, except for the cloth business. The assessee is a Hindu undivided family, named "Kapoorchand Shrimal". In the course of the assessments for those years, by its letters dated 10th October, 1960, 16th January, 1961 and 11th March, 1962, the assessee brought to the notice of the Income-tax Officer that all the movable and immovable properties of the Hindu undivided family were partitioned by metes and bounds on 10th July, 1960 and the Hindu undivided family had become disrupted and extinct and requested him to pass an order recording complete partition under section 25-A of the Indian Income-tax Act, 1922 (hereinafter called "the Act"). In his letter dated 17th March, 1962, the Income-tax Officer acknowledged receipt of the assessee's letter dated 11th March, 1962 on 12th March, 1962 and intimated the assessee that the matter was receiving his attention and that, it would be disposed of in accordance with law. In their letter dated 21st March, 1962, the assessee's. Chartered Accountant's M/s. S. G. Dastagir and Co., invited the attention of the Income-tax Officer to the earlier letters and raised a contention that an order under section 25-A has to be passed before the completion of the assessment for the year 1957-58 and that, the assessment made without first disposing of the assessee's application under section 25-A would be invalid in law.
(3.) For diverse reasons, the Income-tax Officer did not dispose of the faid applications made by the assessee under section 25-A before he could complete the assessments for those years. The Income-tax Officer completed the assessments for the aforesaid assessment years, between 31st August, 1962 and 26th March, 1966.;


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