TMI Blog1996 (1) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... eferred at the instance of the assessee, in the negative, i.e., in favour of the assessee and against the Revenue : " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessment of the assessee as an unregistered firm for the assessment year 1961-62 was proper ? " The assessee is a firm. The assessment in question relates to the assessment year 1961-62, governed by the Indian Income-tax Act, 1922. Since it did not apply for registration, the Income-tax Officer completed the assessment treating the assessee as an unregistered firm. He computed the total income at Rs. 59,623 which included the sum of Rs. 50,000 as income from other sources which was agreed to by the assessee (see ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax Reference No. 10 of 1973). Though the High Court has noted elaborately the contentions of counsel for both sides, it rested its decision exclusively on the aforesaid earlier (unreported) decision of that court. Unfortunately, a copy of the said unreported decision is not made available to us. We are, therefore, unable to ascertain the precise reasoning on the basis of which the question has been answered by the High Court in the negative. We have, however, heard counsel for both the parties and we presume that in the opinion of the High Court, the assessment on the firm is invalid for the reason that the share income of a partner was included in his individual assessment which means that the Income-tax Officer has exercised the discret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of assessment on the firm, made by the Income-tax Officer, "C" Ward (at pages 8 to 10 of the paper book), does not in any manner indicate that the Assessing Officer was aware, even distantly, that the partners of the firm have been already assessed with respect to their share income from this firm. Indeed, the Tribunal has said that it had no information whether or when any other partner was assessed. Coupled with this, is the express recital in the assessment order relating to the partner referred to above. In the light of the above circumstances, we are of the opinion that the Tribunal was justified in concluding that the option contemplated by section 3 of the 1922 Act was not exercised by the Income-tax Officer in this case and hence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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