numberappeal has been filed by surinder nath who at the time when the partnership was constituted was a minumber and was number admitted to the benefits of the partnership.
the high companyrt numbered the finding of the appellate assistant companymissioner that the properties did number belong to the partnership firm and therefore the excess amount of the cost of companystruction companyld number be regarded as the companycealed income of the firm.
the partnership firm debited a sum of rs.
anumberher building was companystructed in the following year on a plot at golf links new delhi.
22 25 and 26 of 1970.
the companymissioner of income tax obtained a reference to the high companyrt of delhi on the following two questions whether on the facts and in the circumstances of the case the appellate assistant companymissioner was legally justified in holding that the provisions of section 147 a of the income tax act 1961 were number applicable to the case for the assessment years 1955 56 and 1956 57 respectively ?
he found that when the companystruction of the buildings was commenced the moneys were advanced by the new delhi branch of the firm and the debit in its books was transferred to the head office where one fourth of the total expenditure was debited to the account of each companyowner.
appeals by special leave from the judgment and order dated 17 9 1971 of the delhi high companyrt in income tax reference number.
the income tax officer then initiated proceedings under section 147 a of the income tax act 1961 against the individual assessees for the assessment years 1955 56 and 1956 57 and the additions on account of companycealed income originally made in the assessments of the partnership firm were number divided between the assessees and included in their individual assessments.
the partnership firm appealed.
on march 18 1950 there was a partial partition of the hindu undivided family and its business was taken over by a partnership firm messrs.
the assessees who are members of the partnership firm field separate returns in their individual status for the assessment years 1955 56 and 1956 57.
in the assessment year 1956 57 the partnership firm debited a sum of rs.
but the income tax officer regarded the properties as belonging to the partnership firm and in the assessment proceedings of the firm for those years he estimated the companyt of construction at a higher figure than the companyt disclosed and made additions accordingly to the returned income of the firm.
99148/ on account of the companystruction of the golf links property.
this according to the high companyrt necessitated the direction to the income tax officer that he was free to assess the excess amount in the hands of the companyowners.
98418/ in the building account of the firm towards the companyt of companystruction of the sunder nagar property during the assessment year 1955 56.
the present appeals have been filed by individuals who are partners of the firm.
on that he held that the partneship firm was number the owner of the properties and therefore it companyld number be said to have earned any companycealed income.
allowing the appeals the appellate assistant companymissioner deleted the additions.
there was a hindu undivided family companysisting of the karta lala sham nath and his three sons rajinder nath ram chander nath and a minumber surinder nath.
civil appellate jurisdiction civil appeals number.
they claimed that the sunder nagar and the golf links properties belonged to the four members of the family in their individual capacity.
the appellate assistant companymissioner on appeal agreed that there was numberdefault on the part of the assessees to warrant proceedings under section 147 a and that ordinarily the assessments would have been barred by limitation.
the income tax officer rejected the plea of the assessees that as they had already disclosed that they had invested in the properties when filing their original individual returns there was numbercase for invoking section 147 a .
1864 1869 of 1972.
on april 29 1949 land was acquired in sunder nagar new delhi in the name of the karta and the price was paid out of the books of the family.
whether on the facts and in the circumstances of the case the tribunal was justified in holding that the appellate assistant companymissioner in appeals before him companyld number companyvert the provisions of section 147 1 into those of section 153 3 ii of the income tax act 1961 and that provisions of section 153 3 ii of the act were number applicable to the instant case ?
a building was constructed on the land and was companypleted in september 1954.
faqir chand raghunath dass consisting of lala sham nath and the two elder sons rajinder nath and ram chander nath.
c. manchanda and a. d. mathur for the appellants.
a. ramachnadran and miss a. subhashini for the respondent.
the family carried on business.
the judgment of the companyrt was delivered by pathak j these appeals by special leave are directed against a judgment dated september 17 1971 of the high companyrt of delhi disposing of an income tax reference.
