9911796707
TMI Blog1997 (11) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee-Hindu undivided family ? (ii) Whether, on the facts and in the circumstances of the case, the entire share income from the firms cannot be included in the total income of the smaller HUF of D. Jegadeesan for the assessment year 1979-80 without cancelling the order under section 171 recognising the partial partition of the bigger Hindu undivided family in the course of the assessment proceedings for the assessment year 1977-78 ?" The assessee is a Hindu joint family and the reference relates to the assessment year 1979-80. The assessee is a joint family consisting of one Jegadeesan as a karta and his wife. The said Jegadeesan was the son of one Dharmar Nadar who was the karta of a joint family carrying on a business. There was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the provisions of section 171 of the Act before the Income-tax Officer having jurisdiction over the matter. The Income-tax Officer considered the matter and held that the joint family consisted of Jegadeesan and Vijay Anand, and there was a partial partition between the assessee and his minor son and the minor son got a half share. After making necessary enquiries, the Income-tax Officer was satisfied that there was a genuine partial partition and passed an order under section 171 of the Act dated February 27, 1978, recognising the partial partition between the assessee and his minor son. Following the said order of the Income-tax Officer, the assessee claimed that the share income from all the three firms should be assessed in the h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Though a contention was raised before the Commissioner of Income-tax that a partial partition was recognised by the Income-tax Officer in his proceedings for the assessment year 1979-80 and after the recognition of partition and that order has become final, it was not open to the Commissioner of Income-tax to hold that the entire share income should be assessed in the hands of the assessee without disturbing the finality. The Commissioner of Income-tax has not considered the objection. Aggrieved by the order of the Commissioner of Income-tax, the assessee preferred an appeal before the Income-tax Appellate Tribunal. The Income-tax Appellate Tribunal held that after an order passed by the Income-tax Officer under section 171 of the Act re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and issue a notice under section 34 of the Indian Income-tax Act, 1922, to the Hindu undivided family to review the order passed under section 25A of the Act, which in its very nature is effective for all subsequent years. According to the apex court, once an order under section 25A of the Act was made, the family ceases to be assessed as an entity and thereafter it cannot be assessed in that status, unless the order is set aside by a competent authority. Obviously, in the instant case, the Commissioner of Income-tax has not taken any steps to set aside the order passed by the Income-tax Officer under section 171 of the Act and the proper course, in our view would be for the Commissioner of Income-tax to initiate proceedings to set aside t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, we are of the view that the Commissioner of Income-tax lacked the jurisdiction to revise the order of assessment made by the Income-tax Officer passed in tune with the order passed under section 171 of the Act. The order of the Appellate Tribunal, holding that the Commissioner has no jurisdiction is in order and we do not find any infirmity in the order of the Appellate Tribunal in holding that the Commissioner of Income-tax had no jurisdiction to revise the order of the Income-tax Officer. We are of the view that the Income-tax Appellate Tribunal was also justified in holding that the Commissioner of Income-tax has no jurisdiction to revise the order of assessment without cancelling the order passed under section 171 of the Act. Since ..... X X X X Extracts X X X X X X X X Extracts X X X X
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