Appeal by special leave from the judgment and order dated December 18, 1964 of the Gujarat High Court in Special Civil Application No.
Sen, S. K. A Iyar, R. N. Sachthey and S. P. Nayar, for the appellant.
T. Desai and 0.
332 of 1964.
768 of 1966.
C. Mathur, for the respondent.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
For the assessment years 1959 60, 1960 61 and 1961 62 the assessees were originally assessed by the Income tax Officer, Circle 1, Ward A, Ahmedabad, while the partners of the assessees and the Hindu undivided families which traded in the names of M s A. M. Shah Co. and M s R. Ambalal Co. were assessed by Income tax Officers in other Circles.
The Judgment of the Court was delivered by Shah, J. The assessees M s A. Raman Company are dealers in mill stores in the companyrse of their business they sell mill stores to other dealers including two companycerns trading in the names of M s A. M. Shah Co. and M s R. Ambalal Co., which are owned by the Hindu undivided families, managers of which are the only partners of the assessees.
That Officer by letter dated March 20, 1964 informed the assessees that he was companyvinced from a perusal of the assessment records of the assessees, their partners and their individual Hindu undivided families, that the partners of the assessees had companytrived to divert profits of the assessees to their respective Hindu undivided families and had tried to evade proper taxation, and on that ground he called upon the assessees to submit their objections, if any, to the reopening of the assessments for the years 1959 60, 1960 61 and 1961 62.
The Income tax Officer issued three separate numberices under s. 147 of the Income tax Act, 1961, requiring the assessees to show cause why the assessments for the years 1959 60, 1960 61 and 1961 62 should number be reopened.
In support of the claim of the Income tax Officer, to reopen the assessments, reliance was placed in the High Court on cl.
The cases of assessees, of the partners of the assessees and of the two Hindu undivided families trading in the names of M. Shah Co. and R. Ambalal Co. were later transferred to the Income tax Officer, Group Circle J, Ahmedabad.
With special leave granted by this Court, the Commissioner of Income tax has appealed to this Court.
The assessees in reply companytended that the Income tax Officer had numberjurisdiction to reopen the assessments since the Hindu undivided families of the two partners and the assessees had submitted effect and companyplete returns of income supported by their books of account, quantity details of purchases, sales and expenses, and had given all material facts and relevant information necessary for assessment at the time of each assessment.
