R.K. Gulati, J. - (1.) THIS reference has been made by the Income-tax Appellate Tribunal in compliance with the directions given by this court under Section 256(2) of the Income-tax Act, 1961 (hereinafter to be referred to as "the Act"), at the instance of Ambika Prasad Sonar who has been assessed in the status of a Hindu undivided family.
(2.) THE assessment years in dispute are 1973-74 to 1977-78. Returns for all these years were filed by Ambika Prasad (hereinafter referred to as an "assessee"), claiming therein the status of an individual. THE assessments were, however, framed in the status of a Hindu undivided family. On the facts, as found by the Income-tax Appellate Tribunal and those as summarised in the statement of the case submitted to this court, it is not in dispute that up to the assessment year 1965-66, the assessments were all along made in the status of a Hindu undivided family of which Ambika Prasad and his two brothers, Panna Lal and Prem Chand, were its members and coparceners. During the course of assessment proceedings for the assessment year 1973-74, the Income-tax Officer called upon the assessee to explain why assessments should not be framed in the status of a Hindu undivided family, as in the past, and why the income earned by his two brothers in their names should also be not included in the total income of the family.
(3.) THE assessee took up the stand that his brothers had separated since long. THEy were doing their separate businesses in their own names. In the statements recorded on oath by the Income-tax Officer, both Panna Lal and Prem Chand had stated that there was a partition in the family on May 19, 1965. A copy of family partition deed in support of such a claim was also filed before the Income-tax Officer. However, both the brothers could not give the names of the witnesses who were the signatories to the partition deed. THE Income-tax Officer recorded a finding that the partition deed was a got-up document that had been prepared after he had instituted an enquiry by giving show-cause notice to the assessee. While rejecting the assessee's claim for partition, he framed the assessment in the status of a Hindu undivided family. In computing the total income, he clubbed the income earned by the two brothers in their names to the income returned by Ambika Prasad. Similar assessments were made for other years in the status of a Hindu undivided family after giving notice to the assessee in respect of each of the other four years in dispute. All these assessments were confirmed in appeal by the Appellate Assistant Commissioner. He held, admittedly, that assessments in the past were made in the status of a Hindu undivided family. No claim under Section 171 of the Income-tax Act was ever lodged with the Income-tax Officer in pursuance of the alleged partition, nor had any order been made recognising the partition in the family. He thus did not find anything wrong with the assessments as framed by the Income-tax Officer.;