1964 (4) TMI 18 - SC - Income Tax

Whether when the Income-tax Officer in his discretion assessed an association of persons to income-tax, the Appellate Assistant Commissioner in appeal or Appellate Tribunal in further appeal can set aside the Income-tax that order and direct him to assess the members of that association individually?

Held that:- Section 3 impliedly gives an option to an appropriate authority to assess the total income of either the association of persons or the members of such association individually.

We, therefore, hold, agreeing with the High Court, that the Appellate Tribunal has jurisdiction to give directions to the appropriate authority to cancel the assessment made on the association of persons and to give appropriate directions to the authority concerned to make a fresh assessment on the members of that association individually. The answer given by the High Court to the question propounded is correct. Appeal dismissed.