- (1.) THE Income Tax Appellate Tribunal, Allahabad, has referred the following question of law under section 256(1) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') for opinion to this Court: 'Whether in the circumstances of the case, the Tribunal was legally correct to hold that there was no case for reopening of assessment under section 147(a)/148 ?'
(2.) THE dispute relates to the assessment years 1978 -79,1980 -81 to 1983 -84. Briefly stated the facts giving rise to the present reference are as follows: The assessee - S.N. Anand is a partner in a firm MIS. Sarang Products, Modinagar, in the capacity of karta of the HUR His wife Smt. Anand was also a partner in the said firm in her individual capacity. In the income returns, the assessee did not disclose the income of his wife. The original assessment was completed under section 143(1) of the Act. Thereafter, reassessment proceedings were initiated for all these years on the ground that the assessee had not disclosed the share income of his wife in the individual status in accordance with the provisions of section 64(1)(i) of the Act. In the reassessment proceedings it was contended that the share of his wife cannot be assessed in the individual status. The Income Tax Officer added the share income of the wife of assessee of the firm M/s. Sarang Products in accordance with the provisions of section 64(1)(i) of the Act. The said order was confirmed in appeal by the Deputy Commissioner of Income -tax (Appeals). Further aggrieved, the assessee filed second appeal before the Tribunal. The Tribunal allowed the appeal.
(3.) HEARD Sri A.N. Mahajan, learned standing counsel for the department.;