BALADIN RAM KALWAR Vs. INCOME TAX OFFICER
LAWS(ALL)-1965-8-13
HIGH COURT OF ALLAHABAD
Decided on August 31,1965

BALADIN RAM KALWAR Appellant
VERSUS
INCOME-TAX OFFICER, B-WARD, VARANASI, Respondents


Cited Judgements :-

RAM SWARUP GUPTA VS. BEHARI LAL BALDEO PRASAD [LAWS(ALL)-1973-2-14] [REFERRED TO]
KUNJ BEHARI LAL VS. SALES TAX OFFICER MORADABAD [LAWS(ALL)-1974-10-7] [REFERRED TO]
SHIV NARAIN VS. SALES TAX OFFICER MUZAFFARNAGAR [LAWS(ALL)-1971-9-3] [REFERRED TO]
HARI PRASAD VS. TAX RECOVERY COMMISSIONER [LAWS(ALL)-1982-9-25] [REFERRED TO]
MANOHAR LAL VS. COMMISSIONER OF INCOME TAX [LAWS(ALL)-1987-8-22] [REFERRED TO]
GORA CHAND POREL VS. UNION OF INDIA [LAWS(CAL)-1985-8-17] [REFERRED TO]


JUDGEMENT

- (1.)THE petitioner is an individual. He constituted a Hindu undivided family with his sons. THE Hindu undivided family was assessed to income-tax for the year 1944-45 on February 29, 1945. Subsequently, proceedings under section 34 of the Income-tax Act, 1922, were taken against the Hindu undivided family and it was reassessed on March 23, 1949, by an order determining the total income at Rs. 71,731. This assessment was set aside by the Income-tax Appellate Tribunal. Fresh proceedings under section 34 were taken resulting in an assessment order dated March 18, 1954. Against the two reassessments under section 34, the Hindu undivided family proceeded in appeal to the Appellate Assistant Commissioner and then to the Income-tax Appellate Tribunal, but its appeals were dismissed. A reference under section 66(1) of the Act was answered by this court against the Hindu undivided family, and now an appeal by special leave under article 136 of the Constitution is pending before the Supreme Court. Certain other questions of law have not been referred by the Appellate Tribunal to this court and the reference is pending. Four notices of demand were serves upon the Hindu undivided family by the Income-tax Officer pursuant to the assessments made upon it, one dated February 21, 1945, in respect of the reassessment under section 34, which was subsequently set aside by the Appellate Tribunal, the third dated October 16, 1952, in respect of the first subsisting reassessment under section 34 dated October 16, 1952, and the fourth dated March 18, 1954, in respect of the further reassessment under section 34. Now although the assessment order dated March 23, 1949, had been set aside in appeal by the Appellate Tribunal, the Income-tax Officer issued a certificate under section 46(2) subsequently, for recovery of the tax demanded consequent to the order. He also issued a recovery certificate to further reassessment under section 34 made on March 18, 1954. So far as this demand is concerned, it has not been disturbed in appeal.
(2.)NOW followed a series of assessments where the income originally determined was reduced in appeal.
For the assessment year 1948-49, the Hindu undivided family was assessed to income at Rs. 2,11,586 and a notice of demand was issued on March 30, 1953, requiring payment of Rs. 1,41,684-2 0 as tax. A recovery certificate was issued on March 28, 1954. An appeal to the Appellate Assistant Commissioner and then to the Appellate Tribunal subsequently resulted in the reduction of the tax liability by a substantial figure. The Income-tax Officer did not issue any fresh notice of demand.

For the assessment year 1949-50, the Hindu undivided family was assessed to a total income of Rs. 1,06,720 giving rise to a tax liability of Rs. 42,362-14-0. On March 24, 1955, a certificate was issued for recovery of that sum. But on March 31, 1959, the Appellate Assistant Commissioner reduced the income assessed for that year. No fresh notice of demand was, however, issued by the Income-tax Officer.

(3.)FOR the assessment year 1950-51, an assessment order was made determining the total income at Rs. 1,13,618 and the tax liability was computed at Rs. 47,460-14-0. A recovery certificate in respect of the same was issued on March 28, 1956. Against this assessment, the petitioner appealed to the Appellate Assistant Commissioner. The Appellate Assistant Commissioner deleted a sum of Rs. 14,655 under the head "interest" but added a sum of Rs. 14,500 as income represented by cash credits. As the deletion almost balanced the addition, the Appellate Assistant Commissioner did not enhance the assessed income and the original figure remained. The Hindu undivided family preferred a second appeal to the Appellate Tribunal, which resulted in the reduction of the assessed income by Rs. 5,880 by an order dated October 24, 1960. No fresh notice of demand was issued by the Income-tax Officer.
Then, for the assessment year 1951-52, the total income of the Hindu undivided family was determined at Rs. 1,04,407 and a notice of demand for Rs. 45,121-13-0 was issued. On January 21, 1957, the Income-tax Officer issued a certificate for the recovery of that sum. Meanwhile, the Hindu undivided family proceeded in appeal, and the Appellate Assistant Commissioner reduced the assessed income by Rs. 38,402 on March 31, 1959; again no fresh notice of demand was issued by the Income-tax Officer.

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