TMI Blog1987 (4) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax Act, 1961, in respect of the assessment years 1960-61, 1961-62 and 1962-63. The respondent was assessed to income-tax for the assessment year 1960-61 under section 23(3) of the Act of 1922 on March 4, 1961, and for the following two assessment years under section 143(3) of the Act of 1961 on June 10, 11, 1963, respectively. Notices under section 147(a) read with section 148 of the Act of 1961 were issued to the respondent in respect of these three assessment years whereupon he challenged the validity of those notices by filing an application under article 226 of the Constitution. Though the notices did not disclose any material to justify their issue, the Income-tax Officer in his return to the rule nisi before the High Court sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charged to tax for that year in accordance with, and subject to the provisions of, the Act at any rate or rates prescribed by the Finance Act. Total income was defined in section 2(15) as meaning 'total amount of income, profits and gains referred to in sub-section (1) of section 4 computed in the manner laid down in this Act'. Section 4(1) set out the method of computation of total income; it enacted: '(1) Subject to the provisions of this Act, the total income of any previous year of any person includes all income, profits and gains from whatever source derived which (a) are received or are deemed to be received in the taxable territories in such year by or on behalf of such person, or (b) if such person is resident in the taxable te ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the total income of any individual for the purpose of assessment there shall be included the classes of income mentioned in clauses (a) and (b). Sub-section (3)(a)(ii), in so far as it is material, provided : 'In computing the total income of any individual for the purpose of assessment, there shall be included (a) so much of the income of a wife or minor child of such individual as arises directly or indirectly-... (ii) from the admission of the minor to the benefits of partnership in a firm of which such individual is a partner.' The assessee was bound to disclose under section 22(5) the names and addresses of his partners, if any, engaged in business, profession or vocation together with the location and style of the principal p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estion of imposition of penalty under section 27 l(1)(c) of the 1961 Act, the Division Bench observed (page 629): " It is obvious that on this. view the order imposing penalty on the assessee would have to be sustained but there is a decision of this court in V. D. M. RM. . RM. Muthiah Chettiar v. CIT [1969] 74 ITR 183 (SC), which is binding upon us and where we find that a different view has been taken by a Bench of three judges of this court. It was held in this case that even if there were any printed instructions in the form of the return requiring the assessee to disclose the income received by his wife and minor child from a firm of which the assessee was a partner, there was, in the absence in the return of any head under which the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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