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TMI Blog1970 (4) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... for accounts of the partnership. The trial court decreed the suit. In appeal to the District Court, the decree was reversed. On appeal under the Letters Patent from the judgment of a single judge, the High Court of Punjab by order dated September 26, 1951, restored the decree of the trial court and declared that the partnership stood dissolved on April 29, 1948. The High Court observed: ".. . . . . notwithstanding the dissolution of the firm Debi Parshad and Balkishan Dass carried on the business of the firm with the property of the firm. On these facts, Jairam Dass, plaintiff, is entitled at the option of himself to such share of the profits made, since he ceased to be a partner, as may be attributable to the use of his share of the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the following three questions at the instance of the Commissioner of Income-tax: " 1. Whether L. Debi Parshad was a stranger in respect of the income-tax proceedings against Ambala Flour Mills? 2. Whether the Appellate Assistant Commissioner could give a direction in the case of Ambala Flour Mills to the effect, that the income should be assessed in the hands of L. Debi Parshad after annulling the assessment in the case of Ambala Flour Mills? 3. Whether, on the facts and in the circumstances of the case, the appeals filed by Shri Debi Parshad were maintainable in law?" The High Court answered the first question in the negative, the second in the affirmative with the order that the assessment against Debi Parshad "could only be in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner may authorise the Income-tax Officer to amend accordingly any assessment made on any partner of the firm or any member of the association." All the returns have been filed by Debi Parshad but in different capacities. The Income-tax Officer was of the view that the business was carried on by an association of persons and the income from the business was liable to be brought to tax on that footing. The Appellate Assistant Commissioner was of the view that the income belonged to Debi Parshad and he was liable to be assessed, personally in respect of the income. Evidently, the Income-tax Officer held that Debi Parshad was a member of an association of persons. Since the Appellate Assistant Commissioner set aside the order assessing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able. But to this rule there were several exceptions. If the assessment had to be made on the assessee or any person in consequence of or to give effect to any finding or direction contained in an order of the Appellate Assistant Commissioner or of the Appellate Tribunal or of the Commissioner in revision or of an order made in a reference, the assessment could be made even after the expiry of the four years. The exception applied to an assessment made against the assessee or any person in consequence of, or to give effect to any finding or direction contained in the order of any superior tribunal, or the High Court or this court. This court in S.C. Prashar v. Vasantsen Dwarkadas held that the second proviso to section 34(3) of the Indian I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssees might be affected by orders passed by the Appellate Assistant Commissioner. 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 cases, though the latter are not eo nomine parties to the appeal, their assessments depend upon the assessments on the former. The said instances are only illustrative. It is not necessary to pursue the matter further. We would, therefore, hold that the expression 'any person' in the setting in which it appears must be confined to a person intimately connected in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mily of which he was a member. The Tribunal set aside the direction to assess the income of the Ambala Flour Mills in the hands of Debi Parshad personally, for in their view Debi Parshad was a stranger to the proceeding for assessment. The High Court held that the order of the Appellate Assistant Commissioner directing assessment of "the family of Debi Parshad" was "clearly unwarranted and could relate only to Debi Parshad in his individual capacity." Appeals Nos. 1277 to 1279 of 1966 were filed against that part of the order of the High Court by which they sought to modify the order of the Appellate Assistant Commissioner. The High Court exercising advisory jurisdiction was incompetent to amend the order of the Appellate Assistant Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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