COMMISSIONER OF INCOME TAX BOMBAY Vs. AMRITLAL BHOGILAL AND CO

JUDGEMENT

(1.) This is an appeal by the Commissioner of Income-tax, Bombay, by special leave and it raises a short question of law under S. 33B of the Income-tax Act. The respondent assessee had been registered as a firm under S. 26A of the Act for the year 1946-47. For the assessment years 1947-48, 1948-49 and 1949-50, the Income-tax Officer made the assessment on the respondent on June 7, 1949, June 7, 1949 and September 23, 1949 respectively under S. 23(3) of the Act. The Income-tax Officer made an estimate about the profits of the respondent under the proviso to S. 13 and computed the total income of the respondent at Rs. 95,053, Rs. 93,430 and Rs. 83,752 for the said years respectively. The respondent had applied for and obtained renewal of registration of the firm. The Income-tax Officer had also passed an order under S. 23(6) of the Act and allocated the shares of the various parties.

(2.) Against the said assessment orders the respondent preferred an appeal to the Appellate Assistant Commissioner. On November 4, 1950, the Appellate Assistant Commissioner reduced the respondent's estimated profit by Rs. 28,250 in the assessment year 1947-48 and by Rs. 19,000 in the assessment year 1948-49. The respondent's appeal in regard to the assessment year 1949-50 was pending before the Appellate Assistant Commissioner.

(3.) Meanwhile it has come to the notice of the Commissioner of Income-tax that the respondent firm which had been granted renewal of registration by the Income-tax Officer was not firm which could be registered under the Act as one of the partners of the firm was a minor. The Commissioner then took action under S. 33B(1) of the Act and issued notice to the respondent to show cause why the assessment made under S. 23(3) of the Act and the registration granted under S. 26A should not be cancelled. After hearing the parties, the Commissioner passed an order under S. 33B (1) on June 5, 1952, by which he cancelled the registration of the firm under S. 26A and directed the Income-tax Officer to make fresh assessments against the respondent as an unregistered firm for all the three years. As a result of this revisional order passed by the Commissioner of Income-tax, the Income-tax Officer passed fresh orders.