TMI Blog1972 (12) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... - Judge(s) : K. S. HEGDE. and P. JAGANMOHAN REDDY. JUDGMENT The judgment of the court was delivered by HEGDE J.--- These are appeals by special leave. Though as many as four questions were referred by the Tribunal to the High Court under section 66(1) of the Indian Income-tax Act, 1922 (to be hereinafter referred to as " the Act "), the only question that was argued before us was question No. 2, namely : " Whether the Appellate Assistant Commissioner in dealing with the appeals of the association of persons consisting of all the heirs of Zahur Bux could give a direction under section 34(3) to take action against the assessee ? " The High Court answered that question in the negative and in favour of the assessee. The m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of any income earned in this business by Mohd. Shakoor and Mohd. Bashir in those years. On the basis of his finding that the assessee---the association of persons consisting of all the heirs of Zahur Bux---is not liable to be taxed in respect of the Mauranipur business, he set aside the order of the Income-tax Officer but directed him to " assess the income from various sources in the hands of the respective persons to whom they arose, bearing in mind the provisions of the second proviso to sub-section (3) of section 34 of the Indian Income-tax Act. Thereafter, the Income-tax Officer issued notices to the respondents under section 34(1)(a) of the Act. The question for decision is whether those notices are barred by time. It is urged on beh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ough it was a matter considered in the order of the Appellate Assistant Commissioner. In other words, this court ruled that the only " finding " that can fall within the scope of the second proviso to section 34(3) is a "finding " which is absolutely necessary for the disposal of an appeal and not other incidental findings. Let us apply that rule to the facts of the present case. The finding of the Appellate Assistant Commissioner that the association of persons, consisting of all the heirs of Zahur Bux, is not liable in respect of the Mauranipur business, is an essential finding ; a finding which was absolutely necessary for the disposal of the case. The further finding that the business had been gifted to Mohd. Shakoor and Mohd. Bashir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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