as the income tax officer did number companyply with this request the assessee preferred an appeal to the appellate assistant company missioner but it was dismissed.
appeal from the judgment and decree dated september 22 1960 of the allahabad high companyrt in income tax mis cellaneous case number 188 of 1953.
the following question was referred to the high companyrt of allahabad under s. 66 2 of the indian income tax act 1922 if in pursuance of s. 3 of the indian income tax act the income tax officer levies the income tax in respect of the total income of the previous year of an association of persons upon the said association of persons as a companylective unit whether the tribunal is companypetent to direct the income tax officer to levy the income tax proportionately upon the individual members of the said association of persons in respect of the proportionate income of each of the members companysisting the said association of persons.
veda vyasa and naunit lal for the respondent.
civil appellate jurisdiction civil appeal number 673 of 1963.
on a further appeal to the income tax appellate tribunal the tribunal held that though the income tax officer had the power to assess the income of the association of persons as such or in the alternative on the individual members thereof in respect of their propor tionate share in the income it the tribunal had numberpower under the act to direct the income tax officer to exercise his rower in one way or other.
for the assessment year 1948 49 the income tax officer levied tax upon the total income in the hands of the said association of persons.
k. kapur and r. n. sachthey for the appellant.
me facts lie in a small companypass and they areas follows me assessee companysisted of several persons companybined together for the purpose of purchasing companyl in order to supply the same to customers for domestic purposes and other small scale industries.
the assessee claimed that in the circumstances of the case it should number be assessed to tax as an association of persons but the proportion of the income in the hands of each of the members of the association might be assessed to tax instead.
the judgment of the companyrt was delivered by subba rao j. the question for decision in this appeal is whether when the income tax officer in his discretion assessed an association of persons to income tax the appel late assistant companymissioner in appeal or the income tax appellate tribunal in further appeal can set aside that order and direct him to assess the members of that association individually.
april 30 1964.
