TMI Blog1929 (8) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... application was made to the Income-tax Officer for the registration of the firm under S. 14 (2), Income-tax Act: this application was considered by the Assistant Commissioner and was rejected on the ground that it was not made in time. An application for revision of this order was made to the Commissioner of Income-tax but was rejected. 2. The non-applicants submitted a return under S. 22 (2), Income-tax Act, and an assessment order was passed by the Assistant Commissioner; an appeal to the Commissioner of Income-tax was filed, but was successful only to a small extent. The assessees then presented an application for a reference to the High Court on the following points: (1) Whether in view of the C.P. Gazette Notification No. 97, da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs in other places. (6) In the same way whether pagdi money which is in the nature of bonus is allowable under S. 10 (2) (ix). (7) Whether goushala levy and Rashtriya fund levy on sales of bidis effected and charged to the account of the above two funds can be held to be the income of the assessee under any section of the Income-tax Act. 3. This application was rejected; the assessees applied to the High Court under S. 66 (3), Income tax Act and Kinkhede, A.J.C., after hearing counsel on both sides stated that he was not satisfied of the correctness of the Commissioner's decision on the points on which reference was sought and required the Commissioner to state the case to this Court. The assessees do not desire reference on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sdiction to assess income-tax from the provisions of S. 5, Cl. (4) of the Act: this is as follows: Assistant Commissioners of Income-tax and Income-tax Officers shall, subject to the control of the Governor-General in Council, be appointed by the Commissioner of Income-tax by order in writing. They shall perform their functions in respect of such classes of persons and such classes of income and in respect of such areas as the Commissioner of Income-tax may direct. The Commissioner may, by general or special order in writing, direct that the powers conferred on the Income-tax Officer and the Assistant Commissioner by or under this Act shall, in respect of any specified case or class of cases, be exercised by the Assistant Commissioner an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer jurisdiction that the law does not give him. The answer to the second part of question 1 is that the notice was illegal. 8. The second question is couched in general terms and has not been argued before us. It appears that an opinion on this question is not now desired. 9. On the third question it is sufficient to state that the words quoted indicate that default has occurred. The notice then does not vary the date on which the return was due. But this is immaterial as our answer to the next question raised before us must be that the notice did not make the return due. That question was not exactly question No. 4 what was urged was that the application for registration of the firm, in order to make applicable provisions of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e partnership deed may be intended to assist escape from the provisions of the Income tax Act. We cannot interfere with the decision of fact that the assessees have not proved that the arrangement to which the Commissioner refers really existed. The only answer which we can give to questions 5 and 6 is the statement of the law made by the Commissioner of Income-tax. 13. In order to avoid misapprehension it is necessary to add that our decision of the questions raised does not necessarily affect the assessment of income-tax with which the order of the Commissioner dealt. The assessees were not a registered firm, even if their application for registration was wrongly considered to be barred by time. The cost of this reference will be borne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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