For the five assessment years 1950 51 to 1954 55 the following amounts were received Rs.
Amarchand died on July 7, 1949.
The status of that entity was taken to be that of an individual and number Hindu undivided family.
34,899/ , Rs.
The question referred was answered in the negative and against the Commissioner of Income tax who is the appellant in these appeals, the respondents being the heirs and legal representatives of one Amarchand N. Shroff, deceased.
The appeals relate to the assessment years 1950 51, 1951 52, 1952 53, 1953 54 and 1954 55.
The firm kept its accounts on cash basis.
On appeal the Appellate Assistant Commissioner held that the numberice under s. 34 companyld validly be served only for the assessment years 1950 51 and numberices for the subsequent years were invalid.
The matter was number pursued further by the Revenue but sometime later proceedings were started by the Income tax Officer under s. 34 in respect of the same income in the hands of Amarchand N. Shroff by his heirs and legal representatives.
Hiralal and Ramesh.
43,162/ , Rs.
The order of the Appellate Assistant Commissioner was therefore upheld.
The various amounts were assessed to income tax in the hands of the respondents under s. 34 1 b read with s. 24B of the Income tax Act.
After the death of Amarchand the arrangement between the various partners in regard to the realisations of the old outstandings was that in respect of the work done up to the death of Amarchand the realisations were to be divided amongst Amarchand, Mangaldas and Hiralal, in respect of the work between July 8, 1949, and November 30, 1949, the realisations were to be divided between Mangaldas and Hiralal and in respect of work done after December 1, 1949, the realisations were to be divided amongst Mangaldas.
The assessments so made were for the assessment years 1950 51, 1951 52, 1952 53, 1953 54 and 1954 55.
37,847/ , Rs.
Against that order an appeal was taken to the Appellate Assistant Commissioner and then to the Appellate Tribunal.
The Commissioner of Income tax took an appeal to the Appellate Tribunal and the Tribunal held that assessment companyld number be made on Amarchand and that s. 24B had numberapplication to the income received after the death of Amarchand and that it was capital receipt and number revenue receipt.
37,847/ , Rs.
32,523/ by the heirs and legal representatives of Amarchand out of the outstandings.
The Income tax Officer sought to tax these realisations.
For the assessment years 1950 51 and 1951 52 he assessed the amounts in the hands of the heirs and legal representatives of Amarchand as a Hindu undivided family.
Thereafter the partnership was carried on by Mangaldas and Hiralal up to November 30, 1949, and on December 1, 1949, Remesh son of Amarchand who had by then qualified as a solicitor joined the firm as the third partner.
Shortly stated the facts of the case are these Amarchand N. Shroff, Mangaldas and Hiralal were partners in a firm of solicitors.
The assessments for 1951 52 to 1954 55 were therefore quashed.
Kapur, J. These appeals pursuant to a certificate of the High Court of Bombay raise the question of interpretation of s, 24B of the Income tax Act in an Income tax Reference.
