TMI Blog1974 (3) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... a partner. The said assessment was also for the aforesaid assessment year 1961-62. Thereafter, the Income-tax Officer, "A " Ward, Dist. III(3), Calcutta, gave to the petitioner on the 6th May, 1966, a notice under section 154/155 of the Income-tax Act, 1961. The purpose of this notice was to rectify the petitioner's assessment made on the 14th March, 1962, upon the assessment of the petitioner's firm on the 31st March, 1966. It has to be borne in mind that the Income-tax Act, 1961, came into effect from 1st of April, 1962. On the 12th May, 1966, respondent No. 1, that is to say, the Income-tax Officer concerned passed an order against the petitioner under section 154 of the new Act for the assessment year 1961-62, rectifying the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Income-tax Act, 1961, and in view of the fact that the return of the income of the petitioner in his individual capacity had been filed prior to 1st of April, 1962, and the assessment was made before 1st of April, 1962, the learned judge came to the conclusion that the notice was not properly issued under section 154 of the Income-tax Act, 1961. The learned judge relied on the decision of the Supreme Court in the case of S. Sankappa v. Income-tax Officer. We are in agreement with the aforesaid conclusion of the learned judge. Indeed, not much argument was advanced before us in respect of this and no cross-objection has been filed by the respondent challenging the aforesaid finding of the learned judge. The learned judge, however ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22, which are as follows : " Where in respect of any completed assessment of a partner in a firm it is found on the assessment or reassessment of the firm or on any reduction or enhancement made in the income of the firm under section 31, section 33, section 33A, section 33B, section 66 or section 66A that the share of the partner in the profit or loss of the firm has not been included in the assessment of the partner or, if included, is not correct, the inclusion of the share in the assessment or the correction thereof, as the case may be, shall be deemed to be a rectification of the mistake apparent from the record within the meaning of the section, and the provisions of sub-section (1) shall apply thereto accordingly..." The learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment of the firm in accordance with the provisions of the new Act. It is undisputed that under section 297(2)(b) of the Income-tax Act, 1961, the assessment of the firm has to be under the new Act and if that is the legal position when the power is given under section 35(5) to rectify the assessment and reassessment of the firm, that power in this case will have to be exercised on the assessment and reassessment of the firm under the new Act. Any contrary view would lead to an anomaly. Counsel for the appellant, however, contended that in order to remove the anomalies that might arise power had been given under section 298 of the Act to issue orders for removal of difficulties and indeed such order has been issued. But this situation has n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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