T.A. Bukte, J.M. - (1.) THE Revenue has filed these appeals that arise out of the common order of the CIT(A) for short, dated 8th July, 1971, for the assessment years that are under appeal before us. In these appeals, the Revenue has taken a common issue that is that the CIT(A) had erred in holding that the assessments as made under the provisions of the IT Act, 1961, (hereinafter referred to as the Act) for these assessment years are invalid.
(2.) The learned Senior Departmental Representative Mr. Choudhary and the learned counsel for the assessee Mr. Venkatesan had addressed us at length and referred to various decisions in support of their respective contentions. We have taken into consideration the arguments that were so advanced by both parties, the paper book that was filed during the hearing that was referred to during the hearing and the case laws that were referred to. The only issue that arises in all these three appeals whether the assessment that has been framed on the HUF was valid or not because on 28th March, 1989, the date on which the assessment order was passed the HUF did not exist because the Karta Mr. Nanjappa who died on 24th September, 1986, leaving behind his wife, a female member of the erstwhile HUF. In support of the invalidity of the assessment on the HUF reliance was made on the Karnataka High Court in CWT vs. G. E. Narayana (1992) 193 ITR 41 (Kar).
(3.) THE facts as admitted by both parties is that the assessment was framed on the HUF for and up to the asst. yr. 1981-82 and this has become final. THE member of the HUF were Mr. Nanjappa, Karta, Mr. Basavaraj, son of Karta and member and the wife of Mr. Nanjappa. Mr. Basavaraj renounced the family along with all its assets and liabilities by putting it in writing to the Karta of the HUF vide his letter of intention dated 14th December, 1982. He further carried the matter to a civil Court by means of a suit No. 3857 of 1987. Mr. Basavaraj in his plaint before the civil Court had made various persons as respondents and they were Government of India, Ministry of Finance; CIT-Karnataka; WTO & ITO Cen. Cir. Revenue Building, Queens Road, Bangalore. THE civil Court passed its decree on 25th February, 1988, declaring that for and from 14th December, 1982, Mr. Basavaraj is not the member of M/s Nanjappa (HUF) Mr. Basavaraj had sent letters to ITO Cen. Cir. 4, Bangalore dated 9th May, 1984 and 7th December, 1987, informing him that he ceases to be the member of Nanjappa (HUF) w.e.f. 14th December, 1982, and that he also has nothing to do with any of the business of other activities of the HUF.;