TMI Blog1977 (7) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... 17,617 as his share of the capital gains arising from the said transaction. In the course of the assessment order the Income-tax Officer stated as follows: "I am adopting the figure furnished by the assessee provisionally, subject to revision later on receipt of correct share of capital gains, from the 6th Income-tax Officer, Circle-II, Coimbatore." This assessment was made on 29th February, 1964. The Income-tax Officer, who was assessing the association of persons, consisting of the said four persons, had earlier served a notice under section 139(2) of the Act, in February, 1963. A nil return was filed on behalf of the association on 19th December, 1963, claiming that no income was liable to be assessed as there was no intention to sel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tained from this court under section 256(2) for reference of the following question also, viz: "Whether the conclusion of the Appellate Tribunal that the Income-tax Officer exercised his option to assess the members of the association individually is supported by material?" In pursuance of this direction, a statement of the case has been submitted and it is numbered as T.C. No. 7 of 1975. As far as the first question is concerned we have considered all the contentions urged by the respective parties in our judgment in T.C. No. 179 of 1971 [Commissioner of Income-tax v. Blue Mountain Engineering Corporation [1978] 112 ITR 839 (Mad)] and we do not think it necessary to go into the same contentions over again here. For the reasons stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne view there can be no exercise of option by the Income-tax Officer, who assessed the individual, when he had no jurisdiction to assess the association as such. However, the point adverted to before us is that the choice is by the department as such and not by the individual. In other words, the point sought to be made out is that all the Income-tax Officers are functioning under the Income-tax Act to assess the income of any person liable to tax and that though, for convenience, they are invested with the jurisdiction over particular cases territorially or otherwise, still as all of them are discharging the same function, when one of them is exercising a choice, then he in a way forecloses the power available to the department to assess t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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