JAGADISAN J.

The Third Additional Income-tax Officer, attached to City Circle V, Madras, passed an order on March 23, 1960, purporting to be one under section 35 of the Indian Income-tax Act and levied a tax of Rs. 49, 965.08 on the petitioner for the assessment year 1955-56. The petitioner challenges the validity of the said order and prays for the issue of a writ of certiorari or other appropriate writ for quashing the same The facts leading up to this writ petition are briefly as follows : The petitioner (assessee) is a professional cinedance director. He was also a partner of a firm called Vinodha Pictures, carrying on business of production of motion pictures. The firm of partnership was constituted by a deed dated January 20, 1950. At the inception there were four partners including the petitioner. This partnership functioned between January 20, 1950, and June 27, 1952. One of the partners, Subburam, retired from the firm and a fresh partnership was constituted between the other three partners which subsisted between June 28, 1952, and July 28, 1953. Then another partner, Raghavacharya, went out of the partnership and the two remaining partners, the petitioner and one D. L. Narayanan, carried on the business between July 29, 1953, and November 12, 1954. In respect of the assessment years 1953-54, 1954-55 and 1955-56, applications were made on behalf of the firm under section 26A of the Income-tax Act for registration. These applications were signed by the partners of whom the petitioner was one. Registration was granted for all the years. The firm was assessed as a registered firm and the particulars of assessment are as detailed below

Assessment Account Date of assessment Total income

year year order determined

Rs

1953-54 27-6-1952 30-3-1957 1, 54, 1841954-55 28-6-1953 30-3-1957 36, 000

1955-56 30-6-1954 30-3-1957 2, 50, 000

The assessment for the years 1954-55 and 1955-56 were made under section 23(4) of the Act. Applications under section 27 of the Act were filed to set aside the assessments under section 23(4) of the Act. Appeals were preferred to the Appellate Assistant Commissioner against the assessments for 1953-54 under section 23(3) of the Act and also against the assessments for the years 1954-55 and 1955-56 under section 23(4) of the Act. The Income-tax Officer having dismissed the applications under section 27 of the Act, appeals were preferred to the Appellate Assistant Commissioner against these orders as well. The appellate authority, after hearing the appeals, computed a loss for 1953-54 at Rs. 25, 849 and the income for 1954-55 as nil. He, however, confirmed the Income-tax Officer's computation of income for 1955-56 at Rs. 2, 50, 000. Further appeals to the Appellate Tribunal were preferred on behalf of the firm. The Tribunal, by its order dated March 9, 1959, allowed the appeals against the orders dismissing the applications under section 27 and directed the Income-tax Officer to make a fresh assessment in accordance with law in respect of the years 1954-55 and 1955-56. The Income-tax Officer carried out the directions of the Tribunal and completed the assessment of the firm in regard to these two years on March 11, 1960, under section 23(3) of the Act. He determined a loss of Rs. 75, 511 for the assessment year 1954-55 and computed a profit of Rs. 2, 66, 787 for the assessment year 1955-56. He also determined the petitioner's share income from the firm. No appeals were preferred against these assessments and they have, therefore, become final

There were also proceedings against the petitioner under the Act for assessment of his income as an individual. The details of the assessment are set out belowAssessment Account Date of Income Total income

year year assessment returned computed

1953-54 3-3-1953 26-1-1955 ; loss Rs. Rs

under profession 5, 723 profit 1, 499

Share of loss from

registered firm 9, 216 Declared "N.A."

Total loss ... 14, 939

1954-55 21-3-1954 29-1-1955

profession loss 2, 570 nil

1955-56 31-3