{"id":195102,"date":"1951-09-11T00:00:00","date_gmt":"1951-09-10T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/lakshminarain-bhadani-vs-c-i-t-bihar-orissa-on-11-september-1951"},"modified":"2017-12-25T07:34:00","modified_gmt":"2017-12-25T02:04:00","slug":"lakshminarain-bhadani-vs-c-i-t-bihar-orissa-on-11-september-1951","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/lakshminarain-bhadani-vs-c-i-t-bihar-orissa-on-11-september-1951","title":{"rendered":"Lakshminarain Bhadani vs C.I.T. Bihar &amp; Orissa on 11 September, 1951"},"content":{"rendered":"<div class=\"docsource_main\">Supreme Court of India<\/div>\n<div class=\"doc_title\">Lakshminarain Bhadani vs C.I.T. Bihar &amp; Orissa on 11 September, 1951<\/div>\n<div class=\"doc_author\">Author: C Kania<\/div>\n<div class=\"doc_bench\">Bench: H.J. Kania (Cji), M.P. Sastri, S. R. Das, N.C. Aiyar, V. Bose<\/div>\n<pre>           CASE NO.:\nAppeal (civil)  23 of 1950\n\nPETITIONER:\nLAKSHMINARAIN BHADANI \n\nRESPONDENT:\nC.I.T. BIHAR &amp; ORISSA\n\nDATE OF JUDGMENT: 11\/09\/1951\n\nBENCH:\nH.J. Kania (CJI) &amp; M.P. Sastri &amp; S. R. Das &amp; N.C. Aiyar &amp; V. Bose\n\nJUDGMENT:\n<\/pre>\n<p>JUDGMENT<\/p>\n<p>AIR 1953 SC 429<\/p>\n<p>The Judgment was delivered by KANIA, C. J.\n<\/p>\n<p>KANIA, C. J.\n<\/p>\n<p>This is an appeal from a judgment of the High Court at Patna. It arises out<br \/>\nof an income-tax reference made to the High Court under section 66(1) of<br \/>\nthe Indian Income-tax Act Briefly stated the facts are that a joint Hindu<br \/>\nfamily, of which the present appellant was the karta, was assessed to<br \/>\nincome-tax for the year 1939-40. In 1944 the Income-tax Officer considered<br \/>\nthat certain income of the family taxable in 1939-40 had escaped<br \/>\nassessment. In the meanwhile, the joint family had become divided and<br \/>\nnecessary steps had been taken by the members to have an order passed under<br \/>\nsection 25A(1) of the Income-tax Act. The Income-tax Officer issued a<br \/>\nnotice in the name of the joint Hindu family and served it on the appellant<br \/>\nunder section 34 read with section 22 of the Income-tax Act to make a<br \/>\nreturn in respect of the escaped income and the appellant sent a return in<br \/>\nresponse to that notice. Thereafter, the Income-tax Officer made an<br \/>\nassessment on the escaped income of Rs. 37,098 and issued a notice of<br \/>\ndemand on the appellant as the karta and on the two other members of the<br \/>\njoint family. The notice was to require payment of the full amount of tax<br \/>\ndue on the escaped income and did not apportion the liability for it<br \/>\namongst the three members of the family. The assessee contended that the<br \/>\nproceedings were irregular and that he was not liable to pay anything. His<br \/>\ncontention was rejected by the Income-tax Officer, the Appellate Assistant<br \/>\nCommissioner, and the Income-tax Appellate Tribunal. He prayed that a<br \/>\nquestion of law may be referred to the High Court for its opinion.<br \/>\nAccordingly the Income-tax Appellate Tribunal referred the following<br \/>\nquestion for the High Court&#8217;s opinion :&#8211;\n<\/p>\n<p>&#8220;Whether in the circumstances of this case proceedings under section 34 in<br \/>\nrespect of the assessment year 1939-40 were validly initiated and completed<br \/>\nagainst the Hindu undivided family, which had ceased to exist then, and an<br \/>\norder under section 25A(1) accepting the partition of the Hindu undivided<br \/>\nfamily had already been passed.&#8221;\n<\/p>\n<p>The High Court expressed the view that there were irregularities both in<br \/>\ninitiating the proceedings and in completing the same but as there was no<br \/>\nprejudice to the appellant, they answered the question in the affirmative<br \/>\nand ordered the assessee to pay the costs of the reference. The assessee<br \/>\nhas come in appeal before us<\/p>\n<p>Mr. Umrigar, on behalf of the appellant, argued only one point for our<br \/>\nconsideration. He contended that as the High Court had held that the<br \/>\nproceedings were irregularly initiated and completed they were invalid and<br \/>\nno order for assessment could be made. For this contention he relies on the<br \/>\nwording of section 25A(1). In our opinion, this contention is unsound and<br \/>\nthe opinion of the High Court that the proceedings were initiated<br \/>\nirregularly is also unsound. It does not appear necessary, when proceedings<br \/>\nare initiated under section 34 read with section 22 of the Income-tax Act,<br \/>\nto issue notice to every member of the family. The position is as if the<br \/>\nIncome-tax Officer was proceedings to assess the income of the Hindu<br \/>\nundivided family as in 1939-40. In our opinion, therefore, that contention<br \/>\nmust be rejected<\/p>\n<p>The next contention urged by Mr. Umrigar was that section 25A(2) requires<br \/>\nthat the assessment should be made against each member of the joint family<br \/>\nfor a proportionate share of the tax and it is only after one of them had<br \/>\nfailed to pay such share that the Income-tax Officer could proceed to<br \/>\nrecover it from the others. The argument so formulated cannot be accepted.<br \/>\nOn a true construction of section 25A(1), it appears that the Income-tax<br \/>\nOfficer in the first place has to make an assessment of the total income as<br \/>\nif no partition had taken place. That means that he has to find out what<br \/>\nthe total income was and calculate the amount of tax payable thereon as if<br \/>\nit was payable by one unit. Having done that, it is the duty of the Income-<br \/>\ntax Officer under the section to apportion the amount payable by the unit<br \/>\namongst the members of the joint family according to the portion of the<br \/>\njoint family property allotted to each of them. That duty also appears to<br \/>\nbe imperative having regard to the concluding words of section 25A(2). In<br \/>\nthe present case, the Income-tax Officer has omitted to make any<br \/>\napportionment. That fact is noticed in the judgment of the High Court and<br \/>\nalso by the Income-tax Appellate Tribunal. In the judgment of the High<br \/>\nCourt it has been stated that this could be put right. In our opinion, it<br \/>\nis necessary that the Income-tax Officer should issue the notice of demand<br \/>\nagainst each the members of the family in accordance with the concluding<br \/>\nwords of section 25A(2) and that should be doneWe are unable to accept the<br \/>\nsecond part of the argument of Mr. Umrigar that it is only on the failure<br \/>\nor default of payment by one of the members that the Government has the<br \/>\nright to recover that portion of the amount from others. The proviso to<br \/>\nsection 25A(2) makes the position very clear. In contrast with that the<br \/>\nproviso to section 26 shows that when the Legislature wanted to give power<br \/>\nto the Income-tax authority to recover from others only on failure of<br \/>\npayment by a party, it said so expressly. The absence of similar words in<br \/>\nthe proviso to section 25A(2) must result in the rejection of this part of<br \/>\nMr. Umrigar&#8217;s argument<\/p>\n<p>As the appeal has failed substantially the appellant is ordered to pay the<br \/>\ncosts of the appeal.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Supreme Court of India Lakshminarain Bhadani vs C.I.T. Bihar &amp; Orissa on 11 September, 1951 Author: C Kania Bench: H.J. Kania (Cji), M.P. Sastri, S. R. Das, N.C. Aiyar, V. Bose CASE NO.: Appeal (civil) 23 of 1950 PETITIONER: LAKSHMINARAIN BHADANI RESPONDENT: C.I.T. BIHAR &amp; ORISSA DATE OF JUDGMENT: 11\/09\/1951 BENCH: H.J. Kania (CJI) &amp; [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[30],"tags":[],"class_list":["post-195102","post","type-post","status-publish","format-standard","hentry","category-supreme-court-of-india"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Lakshminarain Bhadani vs C.I.T. 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