TMI Blog1968 (8) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... s is an appeal by special leave against the judgment of the Punjab High Court dismissing the writ petition of the appellants herein under articles 226 and 227 of the Constitution by which it was prayed that a writ of prohibition directing the income-tax authorities not to proceed with the assessment for the year 1952-53 be issued. A prayer was also made for the issue of a writ of certiorari for quashing the notices under sections 23(2) and 22(4) of the Income-tax Act, 1922, hereinafter called " the Act", which had been issued by the Income-tax Officer in that connection. The appellant firm filed a return for the assessment year 1952-53 on March 31, 1953. It also applied that it may be registered as a firm under section 26A of the Act, the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d not be regarded as strangers to the proceedings which resulted in the assessment order made in respect of them on the basis of their constituting a Hindu undivided family along with others and that they were intimately connected with the " person " whose assessment was made by the Income-tax Officer and set aside by the Appellate Assistant Commissioner on whose direction fresh assessment proceedings were taken. The second proviso, to section 34(3) of the Act reads : " Provided further that nothing contained in this section limiting the time within which any action may be taken, or any order, assessment or reassessment may be made, shall apply to a reassessment made under section 27 or to an assessment or reassessment made on the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as income which belonged to another year, that was not a finding necessary for the disposal of the appeal and was only incidental to it. The meaning of the words " any person " was also considered and it was said at page 346 that a combined reading of sections 30(1) and 31(3) indicated the case where persons other than the appealing assessee might be affected by the orders passed by the Appellate Assistant Commissioner. It was observed : " Modification or setting aside of assessment made on a firm, joint Hindu family association of persons, for a particular year may affect the assessment for the said year on a partner or partners of the firm, member or members of the Hindu undivided family or the individual, as the case may be. In such c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icable. In this connection it may be mentioned that according to Mr. Veda Vyasa two returns had been filed by the appellant for the assessment year 1952-53, one relating to the Hindu undivided family and the other, of the partnership firm. But the statements contained in the writ petition of the appellant do not support this submission. In paragraph 3 of that petition it is stated that the firm and all the three partners filed their returns of profit and loss on March 31,1953, with the Income-tax Officer and also made an application under section 26A of the Act for registration of the firm. It is true that in the assessment order of the Income-tax Officer the status of the assessee is shown to be Hindu undivided family but that has been app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covers material questions which arise in a particular case for decision by the authority hearing the case or the appeal which, being necessary for passing the final order or giving the final decision in the appeal, has been the subject of controversy between the interested parties or on which the parties concerned have been given a hearing ". The first submission of Mr. Veda Vyasa, therefore, cannot be accepted. The second limb of the argument of Mr. Veda Vyasa is based on the premise that the appellant which was a partnership firm was a distinct legal entity and was thus a total stranger to the Hindu undivided family the assessment of which came up for consideration before the Appellate Assistant Commissioner in which the orders alread ..... X X X X Extracts X X X X X X X X Extracts X X X X
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