Pathak, J. - (1.) UPON a statement of the case submitted by the Income Tax Appellate Tribunal under Section 66 (1) of the Indian Income Tax Act, 1922, in respect of the assessment years 1949-50 and 1950-51 the following four questions have been referred to this Court. 1. Whether on the facts and the circumstances of the case the finding of the Tribunal that the assesses failed to disclose fully and truly all material facts necessary for his assessments for those years is correct? 2. Whether on the facts and circumstances of the case the finding of the Tribunal that the income had escaped assessment in correct? 3. Whether on the facts and in the circumstances of the case notices u/s 34 (1) were validly issued? 4. Whether the assessments in question are invalid at law?
(2.) THE assessee, Niranjan Lal Potdar, is a member of a Hindu undivided family carrying on business under the name. Messrs. Shiv Charan Lal Bankey Lal. THE family has been assessed since the assessment year 1918-10 on income from a number of sources. In May 1926, a partnership firm, Messrs. Niranjanlal Ram Chander, was constituted for the purpose of carrying on business in cloth. The assessee held a share in the business. The share of profits in the firm allocated to the assessee was assessed in the hands of the family ever since the assessment year 1929-30. In assessment proceedings for the assessment year 1943-44, however, the assessee contended that he was the owner of the share in the firm and the consequent share of the profits received from that firm could not be included in the total income of the Hindu undivided family. This was not accepted by the Income Tax Officer, and the share was included in the assessment of the family. An appeal against assessment was dismissed on May 19, 1947. The share in the profits of the firm continued to be thus assessed in the hands of the Hindu undivided family until the assessment year 1946-47.
(3.) IN the assessment proceeding for the assessment year 1947-48 a claim was made before the INcome Tax Officer that the assessee had separated from the Hindu undivided family as far back as 1924 and it was prayed that an order under Section 25A of the Act be made. The claim was rejected and the order became final in the absence of any appeal against it. For the first time, on March 23, 1952 the assessee filed income tax returns for the assessment year 1947-48 to 1951-52 in the status of an individual. The returns contained a note reading: "The assessee holds a share in M/'S Niranjanlal Ram Chander but since that is taxed in the hands of the H. U. F. styled Shiv Charan Bankey Lal, the same is not included here." The return for the assessment year 1947-48 was "filed" on March 27, 1952, by the Income Tax Officer on the ground that it was incompetent Proceedings were taken on the remaining four returns, and notices under Section 23 (2) were issued on July 11, 1952. On the date of hearing all the four cases were adjourned sine die. ;