TMI Blog1997 (5) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax Act, 1961, and there was no inherent lack of jurisdiction ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law and on facts in annulling the assessment framed in the status of association of persons ? 3. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law and on facts that there was no association of persons in existence for the period from April 11, 1963, to February 29, 1964 ? 4. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that there was no mental exercise by the Board in the granting of approval under section 151 for the start of assessment proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer, Solan, came into being only in 1977. The assessment relates to 1964-65. Hence, the contention that the Income-tax Officer, Shimla, had no jurisdiction has to fail. Consequently, we answer the first question in the affirmative that the Tribunal is right in holding that the Income-tax Officer, A Ward, Shimla, had jurisdiction to initiate proceedings under section 147(a) of the Income-tax Act and there was no inherent lack of jurisdiction. As regards the second question, originally the assessment was on the footing that there was a partnership firm comprising four persons. It was found that two of them had disowned any connection with the partnership. Murari Lal said in the course of examination that he had neither made investment nor w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r being associated in the business. In such circumstances, the Tribunal is right in holding that there was no association of persons in the eye of law to be proceeded against in the assessment proceedings. Consequently, we answer questions Nos. 2 and 3 in the affirmative holding that the Tribunal was right in annulling the assessment framed in the status of association of persons on the footing that there was no association of persons in existence for the period from April 11, 1963, to February 29, 1964. When the proceedings were sought to be initiated again for assessment on the footing that there was an association of persons, sanction of the Board was obtained by the Income-tax Officer under section 151(1) of the Income-tax Act. The re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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