| Case ID |
f66ab4c9-fff1-42d3-a338-f3d5bb5dd1f0 |
| Body |
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| Case Number |
D-2741 of 2016 |
| Decision Date |
Mar 14, 1978 |
| Hearing Date |
Dec 30, 1974 |
| Decision |
The Punjab and Haryana High Court ruled that the assessment made under section 143(3) on December 30, 1974, was valid for Har Parshad, as he voluntarily participated in the assessment process. However, the court clarified that the assessment could not be binding on the other three individuals since they did not receive the notice under section 148. The court also stated that no association of persons was formed by the four individuals in the purchase and sale of land, as they did not join in a common purpose to earn profits. The Tribunal's decision to cancel the assessment was upheld, and it was concluded that the four individuals acted merely as co-owners of the property rather than as an AOP. |
| Summary |
The case revolves around the assessment of income tax for the assessment year 1960-61 concerning a sale of land by four partners of a firm. The Income Tax Officer (ITO) issued a notice under section 148 treating them as an Association of Persons (AOP). However, the notice was returned undelivered. The ITO then proceeded to make a best judgment assessment under section 144. One partner, Har Parshad, contested this assessment, claiming he did not receive the notice. The Tribunal ultimately ruled that no valid AOP was formed because there was no common purpose among the partners to earn income. The case highlights the importance of proper notice and the criteria for defining an AOP under the Income-tax Act. Trending keywords include 'Income Tax Assessment', 'AOP', 'Tax Law', and 'Legal Precedents'. |
| Court |
Punjab and Haryana High Court
|
| Entities Involved |
Noop Ram Man Singh,
Bazar Sirkiwalan, Delhi
|
| Judges |
GOKAL CHAND MITAL,
K.S. BHALLA
|
| Lawyers |
Ashok Bhan,
Ajay Mittal
|
| Petitioners |
Har Parshad
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1989 SLD 2461,
(1989) 178 ITR 591
|
| Other Citations |
CIT v. Indira Balkrishna [1960] 39 ITR 546 (SC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
143(3),
144,
148,
146,
3
|