The Income tax Appellate Tribunal, Hyderabad Branch modified the order of the Appellate Assistant Commissioner.
51,000, and determined Rs.
At the instance of Rajareddy Mallaram the following two questions were referred to the High Court of Andhra Pradesh by the Tribunal.
The latter then applied under s. 27 of the Indian Income tax Act for can cellation of the assessment.
The application was rejected by the Income tax Officer.
Appeal from the judgment and order dated January 19, 1960, of the Andhra Pradesh High Court in case referred No.
firm, by the death of one of the partners.
The business was then discontinued, and the Group was dissolved.
The Incometax Officer, Nizamabad Circle, issued a numberice under s. 34 of the Income tax Act calling upon Baba Gowdone of the members of the Group to file a return of the income of the Group, but Baba Gowd failed to file the return on the due date.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
7 of 1958.
8,826 14 0 as the tax payable.
Attempts made by the Income tax Department to recover the tax from Baba Gowd having proved unsuccessful, on March 13, 1954, the Income tax Officer issued a numberice of demand addressed to Rajareddy Mallaramanother member of the Group.
With the end of Fasli year 1358 the companytracts came to an end.
290 of 1963.
Bhimasankaram and K.R. Sharma, for the respondent.
The Judgment of the Court was delivered by SHAH, J. Baba Gowd, P.V. Rajareddy and Rajareddy Mallaram formed an association of persons called Nizamabad Group Liquor Shops called for the sake of brevity the Group.
N. Rajagopal Sastri and R.N. Sachthey, for the appellant.
In appeal to the Appellate Assistant Commissioner, the order was set aside and the Income tax Officer was directed to cancel the order of assessment under s. 23 4 and to make a fresh assessment after giving an opportunity to Rajareddy Mallaram to file a return and to produce the books of account of the dissolved Group.
For the Fasli year 1358 i.e. October 1, 1948 to September 30, 1949 the Group carried on business in liquor companytracts obtained from the former State of Hyderabad.
The Incometax Officer then assessed the taxable income of the Group under s. 23 4 at Rs.
November 20, 1963.
The Group did number make a return of its income pursuant to the general numberice under s. 22 1 of the Indian Income tax Act.
