ax Reference Case No 19 of 1975
Tax Reference section 256 of the Income Tax Act 1961 made by the Income Tax Appellate Tribunal Jabalpur Bench Jabalpur in RA No 221Jab73 74 arising out of ITA No 1560 Jab1972 73 decided on 10 1 1974 Assessment Year 1967 68
section T Desai BL Noma and KJ John for the Petitioner 852 Vs
Desai Champat Rai and Miss A Subhashini for the Respondent
The Judgment of AP Sen and E section Venkataramiah JJ was delivered by Sen J RS Pathak J gave a separate opinion
PATHAK J I agree
The acceptance of a disclosure statement made by a declarant under s24 of the Finance No cannot confer immunity on another person from tax liability in respect of the same sum of money
As was held by this Court in Ahmed Ibrahim section Dhoraji vs The Commissioner of Wealth Tax Gujarat the liability imposed under s24 of the Finance No is identifiable with the income tax liability under the Income tax Act
The scheme for voluntary disclosure of income and its taxation is only another mode provided by law for imposing income tax and recovering it
Consequently the general principles which apply to assessments made under the Income Tax Act would except for the provision to the contrary be applicable to assessments made under s24 of the Finance No Accordingly when the assessment to income tax is made under the latter enactment it will be governed by the general principle that a finding recorded therein governs only the particular person assessed
The jurisdiction of an Income Tax officer when making an assessment is concerned primarily with the issue whether the receipt under consideration constitutes the income of the assessee before him
Any finding reached by the Income Tax officer touching a person not the assessee in the process of determining that issue cannot be regarded as an operative finding in favour of or against such person
The only exception to this rule centres on the limited class and for the limited purpose defined by this Court in Income Tax Officer A Ward Sitapur vs Murlidhar Bhagwan Das
Viewed in the light of that principle it is apparent that the finality enacted by sub section 8 of section 24 of the Finance No attaches to the assessment of the declarant only
It cannot in law operate in favour of or against any other person
I am of opinion that the making of an assessment against a declarant on his disclosure statement under s24 of the Finance No cannot deprive an Income Tax officer of jurisdiction to assess the same receipt in the hands of another person if in 853 a properly constituted assessment proceeding under the Income Tax A Act the receipt can be regarded as the taxable income of such other person
I would answer the first question in the affirmative in favour of the Revenue and against the assessee
That being so no answer is necessary to the second question
The Commissioner of Income Tax is entitled to his costs of the reference
SEN J This is a direct reference under section 257 of the Income Tax Act 1961 made by the Income Tax Appellate Tribunal Jabalpur for short The Appellate Tribunal at the instance of the assessee
The reference is necessitated due to divergence of opinion as reflected in the various decisions of different High Courts with respect to the scope and effect of the Voluntary Disclosure Scheme under section 24 of the Finance No the Act  for short
The assessee Messrs Jamnaprasad Kanhaiyalal is a partnership firm
The firm consists of 4 partners namely Kanhaiyalal and his 3 major sons Rajkumar Swatantrakumar and Santoshkumar with his minor son Satishkumar admitted to the benefits of the partnership
In the course of assessment proceedings for the assessment year 1967 68 the relevant accounting year of which was the year ending Diwali 1966 the Income Tax officer ITO for short noticed in the books of account of the asssesee five Cash credits of Rs 9250 each in the names of five sons of Kanhaiyalal as detailed below Rs Sailendrakumar 5 yrs
9250 Satishkumar 9 yrs
9250 Sunilkumar 7 yrs
9250 Swatantrakumar 16 yrs
9250 Santoshkumar 18 yrs
9250 46250 The ITo accordingly called upon the assessee to explain the genuineness as well as the source of the cash credits
On being questioned Kanhaiyalal the Managing Partner disavowed ail knowledge as to the capacity of the creditors to advance the amounts in question
854 On the contrary he admitted that the creditors had no independent source of income of their own
In fact he further stated that he could not explain the source of the cash credits
It was contended before the ITo that the creditors having made voluntary disclosures under the Voluntary Disclosure Scheme and the disclosures made by them having been accepted by the Commissioner of Income Tax and tax paid thereon the amount of Rs 46250 could not be treated as income of the assessee from undisclosed sources
The ITo however held that the disclosures made under the scheme granted immunity from further taxation only to the declarant and not to person to whom the income actually belonged
He further held that the assessee having failed to prove the genuineness and source of the cash credits the amount of Rs 46250 credited in the books of account of the assessee in the names of the creditors who had no income of their own must be treated as the assessee s income from undisclosed sources
According to him such cash credits were treated in their names after making false declarations under the Scheme with a view to avoid a higher rate of taxation
He accordingly made an addition of Rs 46250 as assessee s income from undisclosed sources
The Appellate Assistant Commissioner disagreed with the ITO holding that when an amount was disclosed by a person under section 24 of the Act there was an immunity not only as regards the declarant but there was also a finality as to the assessment
In his view the entire statement of Kanhaiyalal had to be ignored as it was not clear in what capacity the questions were put to him and the answers elicited because any investigation into the source of the deposits was prohibited and illegal under the Act
He accordingly held that the acceptance of the voluntary disclosures made by the creditors in question to the Commissioner and the payment of tax thereon precluded the Department from disputing that the income belonged to the said creditors and as the same income cannot be taxed twice once in the hands of the creditors and again in the hands of the assessee the order passed by the ITO in that behalf was unsustainable
The Appellate Assistant Commissioner therefore directed the deletion of Rs 46250
The Department went up in appeal before the Appellate Tribunal
The Appellate Tribunal however disagreed with the Appellate Assistant Commissioner and upheld the decision of the ITo
It was of the opinion that the ITo was justified in treating the cash credits appearing in the books of account of the assessee in the names of 855 the creditors as unexplained cash credits since it was found that the A income declared by the creditors did not belong to them and there was nothing to prevent the same being taxed in the hands of the assessee to which it actually belonged
According to the Tribunal the immunity under section 24 of the Act was conferred on the declarant only and there was nothing to preclude an investigation into the true nature and source of the credits
The Appellate Tribunal after taking into consideration the statement of Kanhaiyalal and having regard to the age of the creditors and the fact that none of them had any independent source of income at any time held that the ITo was justified in holding that the asssessee failed to discharge the burden of proof under section 68 of the Income Tax Act 1961 in regard to the nature and source of the cash credits and therefore it had to be treated as the assessee s income from undisclosed sources
Thereupon the assessee applied to the Appellate Tribunal under section 256 of the Income Tax Act 1961 to refer the question of law arising out of its order to the Madhya Pradesh High Court for its opinion
There being a conflict of opinion between the different High Courts as to the true nature of the immunity granted under section 24 of the Act the Appellate Tribunal has made a reference under section 257 of the Income Tax Act 1961 to this Court of the following questions of law for its opinion namely 1
Whether on the facts and in the circumstances of the case it was open to the Revenue authorities to investigate into the genuineness of the five credits aggregating to Rs 46250 and records a finding in regard thereto when the Disclosure petitions made by the five creditors under Section 24 of the Finance No  had been acted upon by the Revenue authorities  2
If the answer to the first question is in the negative and in favour of the assessee whether the addition of Rs 46250 to the income of the assessee as representing its income from undisclosed sources for the assessment years 1967 68 is valid and justified in law  The main question in controversy lies within a narrow compass
The question in fact is whether the provisions of section 24 of the Act can be construed as conferring any benefit concession or 856 immunity on any person other than the person making the declaration under the provisions of the Act
It may be mentioned that to avoid any room for doubt the legislature has introduced section 18 in the Voluntary Disclosures of Income and Wealth Act 1976 Act No 8 of 1976 which specifically provides that save as otherwise provided in the Act nothing contained in the Act shall be construed as conferring any benefit concession or immunity on any person other than the person making the declaration under the provisions of the Act
The question for consideration is whether the absence of such a provision as is found in Act No 8 of 1976 leads to the consequence that acceptance of a declaration under section 24 of the Act confers a benefit which is not provided by the Act on a person other than the declarants and takes away the power of the ITO under section 68 of the Income Tax Act 1961 to make an investigation as to the nature and source of a cash credit appearing in the books of the assesssee to reject the explanation offered by the assessee as unsatisfactory and to treat it as his income from undisclosed sources
Section 24 of the Finance No provided for the making of voluntary disclosures in respect of amounts representing income chargeable to tax under the Income Tax Act 1922 or the Income tax Act 1961 for any assessment year commencing on or before April 1 1964
On such disclosure being made under sub section
I thereof in the manner provided by sub section
2 the amount was to be charged to Income tax in accordance with sub section
3 which provided by a legal fiction that income tax shall be charged on the amounts of voluntarily disclosed income at certain specified rates as if such amount were the total income of the declarant
There was a safeguard provided in sub section
4 that the benefit under the scheme would be available only in respect of the voluntarily disclosed income and not in respect of the amount detected or deemed to have been detected by the ITO before the date of declaration
When the Commissioner of Income Tax passed an order under sub section
4 there was an appeal provided to the Central Board of Revenue under sub section
S and the Board was empowered under sub section
6 to pass such orders thereon as it deemed fit
There was a finality attached to the order of the Board under sub section
8 In support of the reference learned counsel for the assessee has in substance put forth a three fold contention
It is submitted firstly that the ITO could not have treated the cash credits standing 857 in the names of the sons of Kanhaiyalal the Managing Partner as 
the assessee s income from undisclosed sources having regard to the fact that each one of them had made a declaration under sub section
I and paid tax thereon under sub section 3
The submission is that it is not permissible for the Department to go into the question of the nature and source of the amount so declared in a voluntary disclosure under s24 of the Act and to say that it does not represent the income of the declarant
Secondly it is urged that sub section
I read with sub section
3 of s24 of the Act has a overriding effect over s68 of the Income Tax Act 1961 and therefore the ITO could not make any investigation as to the nature and source of the cash credits and thirdly it is submitted that there cannot be double taxation of the same income once in the hands of the creditors and again in the hands of the assessee
These submissions proceed on a wrongful assumption that there is a finality attached under sub section
8 to the legal fiction created by sub section
3 for which there is no basis whatever
The contentions cannot in our opinion prevail
For an appreciations of the contentions raised it is necessary to set out the relevant provisions of s24 of the Act
Sub section
1 insofar as relevant reads 
1 Subject to the provisions of this section where any person makes on or after the 19th day of August 1965 and before the 1st day of April 1966 a declaration in accordance with sub section 2 in respect of the amount representing income chargeable to tax under the Indian Income tax Act 1922 11 of 1922 or the Income tax Act 1961 43 of 1961 for assessment year commencing on or before the 1st day of April 1964 a for which he has failed to furnish a return within the time allowed under section 22 of the Indian Income tax Act 1922 11 of 1922 or section 139 of the Income tax Act 1961 43 of 1961 or G b which he has failed to disclose in a return of in come filed by him on or before the 19th day of August 1965 under the Indian Income Tax Act 1922 11 of 1922 or the Income Tax Act 1961 43 of 1961 or 858 c which has escaped assessment by reason of the omission or failure on the part of such person to make a return under either of the said Acts to the Income tax officer or to disclose fully and truly 11 material facts necessary for his assessment
he shall notwithstanding anything contained in the said Acts be charged income tax in accordance with sub section 3 in respect of the amount so declared or it more than one declaration has been made by a person the aggregate of the amounts declared therein as reduced by any amount specified in any order made under sub section 4 or if such amount is altered by an order of the Board under sub section 6 then such altered amount  
Sub section
3 containing the legal fiction reads as follows 3 Income tax shall be charged on the amount of the voluntarily disclosed income a where the declarant is a person other than a company at the rates specified in paragraph A and b where the declarant is a company at the rates specified in Paragraph F of Part I of First Schedule to the Finance Act X of 1965 as if such amount were the total income of the declarant Sub section
8 on which strong reliance is placed runs thus 8 An order under sub section 6 shall be final and shall not be called in question before any Court of law or any other authority
The crux of the matter is whether the provisions of s24 of the Act can be construed as conferring any benefit concession or immunity on any person other than the person making the declaration under the provisions of the Act
The question is whether the non obstente clause contained in sub section
I of section 24 of the Act precludes the Department from proceeding against the person to whom the income actually belonged
The contention that there was an immunity not only as regards the declarant but there was also a finality as to the assessment under s24 of the Act stems from a misconception of the nature and scope of the Voluntary Disclosure Scheme
859 Under sub section
I of s24 a person was required to make a voluntary disclosure in respect of the amount representing the income chargeable to tax under the Indian Income Tax Act 1922 or the Income Tax Act 1961 for any assessment year commencing on or before April 1 1964
Sub section I makes it clear that the declarations which were expected to be made in the manner provided by sub section
2 were with regard to the income which was chargeable to tax under the Income Tax Acts of 1922 or 1961 but which was not disclosed at the proper time
Neither under the Act of 1922 nor under the Act of 1961 was a person required to submit a return with regard to the income which was either not earned or deemed to have been earned by him
It therefore follows that the declarations under sub section
2 of s24 had to relate to income actually earned by him
The scheme only permitted the bringing forward of income to tax it did not require investigation of the claim of the declarant
If a person made a declaration the Commissioner was under an obligation to assess him to tax
In respect of the voluntary disclosures made a declarant acquired an immunity from further investigation as to the nature and source of the income
He also acquired certain benefits
One of the distinctive features of the scheme was that tax was chargeable on the whole of the disclosed income taken as a single block at rates prescribed for personal income or for corporate income under the Act and not at an ad hoc concessional rate
Further facilities were allowed to payment of tax in appropriate instalments extending over a period not exceeding four years subject to a down payment of not less than 10 of the tax due and furnishing a security in respect of the balance
Income which had already been detected on the material available prior to the date of disclosure was however to be assessed under the regular provisions of the Income Tax Act and not under the scheme
Any admissions made by a person in the declarations filed by him under the scheme in respect of such income were not to be used in assessing that income under the Income Tax Act
Under the scheme the disclosed income was not to be subject to any further proceedings of assessment
The identity of the declarant was not to be revealed and he was also immune from penalty and prosecution for the past concealment of the disclosed income
It is therefore obvious that the Act granted immunity only to the declarant alone and not to other persons to whom the income really belonged
The scheme of the Act makes it abundantly clear that it was to protect only those who preferred to disclose the income they 860 themselves had earned in the past and which they had failed to disclose at the appropriate time
It is undoubtedly true that the Act was brought on the statute book to unearth the unaccounted money
But there is no warrant for the proposition that by enacting the same the legislature intended to permit or connive at any fraud sought to be committed by making benami declarations
If the contentions were to be accepted it would follow that an assessee in the higher income group could with immunity find out a few near relatives who would oblige him by filing returns under s24 of the Act disclosing unaccounted income of the assessee as their own and claiming that the said income was kept by them in deposit with the assessee
That takes us to the contention based on the legal fiction contained in sub section
3 of s24 of the Act and the finality of the assessment by virtue of sub section
8 thereof
The legal fiction contained in sub section
3 of s24 of the Act construed in the light of the other provisions must mean that the income voluntarily disclosed shall be deemed to be the income of the declarant
The words as if such income were the total income of the declarant can only mean that even though the income did not actually belong to the declarant lt would be treated to be his income for purposes of payment of income tax under the scheme
If therefore a person made a false declaration with regard to income not earned by him it is difficult to comprehend how the Department could be prevented from proceeding against the person to whom the income actually belonged and during the course of whose assessment the concealed income is detected
It therefore logically follows that on a disclosure being made the amount was not to be charged to income tax in accordance with sub section
3 of s24 of the Act taking the disclosed income as the taxable income of the declarant
The immunity under section 24 of the Act was conferred on the declarant only and there was nothing to preclude an investigation into the true nature and source of the credits
The ITO was therefore justified in treating the cash credits in the books of account of the assessee in the names of the creditors as unexplained cash credits
The finality under sub section
8 is to the order of the Central Board of Revenue under sub section
Under sub section
4 the Commissioner of Income Tax was required within thirty days if satisfied that the whole or any part of the income declared had been detected or deemed to have been detected by the ITO prior to the 861 date of declaration to make an order in writing to that effect and forward a copy thereof to the declarant
Any person who objected to such an order could appeal under sub section 5 to the Central Board of Revenue stating the grounds for such an objection
The Board was empowered to pass such orders as it thought fit under sub section
This order of the Board under sub section
6 was final and conclusive by reason of sub section
Thus the finality under sub section
8 was to the order of the Board under sub section
6 of section 24 and not to the assessment of tax made on the declarations furnished by the creditors under the scheme by virtue of the legal fiction contained in sub section
3 of section 24 of the Act
The next question that calls for determination is whether the non obstante clause contained in sub section
1 of section 24 of the Act precludes the Department from proceeding against the person to whom the income actually belonged
Under sub section
1 of section 24 the declaration was required to be made in respect of the amount which represented the income of the declarant
The declaration could not be made in respect of an amount which was not the income of the declarant
If therefore a person made a false declaration with respect to an amount which was not his income but was the income of somebody else then there was nothing to prevent an investigation into the true nature and sources of the said amount
There was nothing in section 24 of the Act which prevented the ITO if he was not satisfied with the explanation of an assessee about the genuineness or source of an amount found credited in his books in spite of its having already been made the subject of a declaration by the creditor and then taxed under the scheme
We find no warrant for the submission that section 24 had an overriding effect over section 68 of the Income Tax Act 1961 insofar as the persons other than the declarants were concerned
In our judgment the legal fiction created by sub section
3 of section 24 of the Act by virtue of which the amount declared by the declarant was to be charged to income tax as if such amount were the total income of the declarant was limited in its scope and it cannot be invoked in assessment proceedings relating to any person other than the person making the declaration under the Act so as to rule out the applicability of section 68 of the Income Tax Act 1961
The last question that remains is whether the same income cannot be taxed twice once in the hands of the creditors and again in the hands of the assessee
In a case of this description there is 862 no question of double taxation
The situation is of the assessee s own making in getting false declarations filed in the names of the creditors with a view to avoid higher slab of taxation
Once it was found that the income declared by the creditors did not belong to them there was nothing to prevent the same being taxed in the hands of the assessee to which it actually belonged
It follows that the decisions of the Gujarat High Court in Manilal Gafoorbhai Shah vs Commissioner of Income Tax of the Allahabad High Court in Badri Prasad  Sons vs Commissioner of Income Tax and Pioneer Trading Syndicate vs Commissioner of Income Tax Lucknow and of the Madhya Pradesh High Court in Addl
Commissioner of Income Tax vs Samrathmal Santoshchand which lay down the true scope of the Voluntary Disclosure Scheme under section 24 of the Act must be upheld
The decisions of the Delhi High Court in Rattan Lal  Ors vs Income Tax Officer and Shakuntala Devi  ors
vs CIT and of the Jammu  Kashmir High Court in Mohd Ahsan Wani vs CIT taking a view to the contrary are overruled
The Income Tax officer was entitled to determine whether the amount disclosed was or was not the income of the declarant while dealing with the case of another assessee under section 68 of the Income Tax Act 1961
The legal fiction created by sub section
3 of section 24 was restricted to the Voluntary Disclosure Scheme itself
The protection enjoyed by the declarant under that scheme extended only to the amounts so declared being not liable to be added in any assessment of the declarant
There was no absolute finality attached to the declaration especially when the nature and source of the sum declared was being determined for the purpose of its inclusion in the income of an assessee other than the declarant
There was therefore nothing which prevented the Income Tax officer from investigating into the nature and source of the sums credited in the books of account of an assessee and reject his explanation to the effect that 863 the sums belonged to the persons who had made declarations about them under section 24 of the Act
Accordingly the reference must be answered in favour of the Revenue and against the assessee
Our answer to the first question is that the legal fiction created by sub section
3 of section 24 of the Finance No2 Act 1965 by virtue of which the amounts disclosed by the declarants had to be charged to income tax as if such amount were the total income of the declarants was limited in its scope and could not be invoked in the assessment proceedings relating to the assessee in whose books of account the cash credits appear
The answer to the first question is sufficient to dispose of the second
On the construction placed on sub section
3 of section 24 of the Act it must also be held that the ITO was justified in treating the cash credits appearing in the books of account of the assessee amounting to Rs 46250 as the assessee s income from undisclosed sources since the assessee failed to discharge the burden of proof placed upon him under section 68 of the Income Tax Act 1961
The Commissioner of Income Tax shall be entitled to his costs of the reference


Summary:
During the course of the assessment proceedings of the assessee firm for the assessment year 1967 68 the Income Tax officer noticed cash credits of Rs 9250 each in the names of five sons of the Managing Partner in the books of the assessee
The Income Tax officer found that these creditors who were minors had no independent source of income
The assessee contended before the ITO that the five creditors had voluntarily disclosed the credits under section 24 of the Finance No and that the disclosures were accepted by the Commissioner
The ITO rejected the contention of the assessee and held that the cash credits in question were unexplained cash credits that they represented the income of the assessee from undisclosed source and accordingly made an addition of Rs 46250
The appellate Assistant Commissioner held that the acceptance of the voluntary disclosures under section 243 of the Act and the payment of tax thereon precluded the Department from disputing the fact that the income belonged to the creditors and as the same income could not be taxed twice once in the hands of the creditors and again in the hands of the assessee set aside the order of the ITO
The Tribunal disagreed with the Appellate Assistant Commissioner and upheld the order of the ITO
Hence the reference at the instance of the assessee under section 257 of the Income Tax Act 1961 
Answering the reference against the assessee the Court  HELD Per Sen J 1
Section 24 of the Finance No cannot be construed as conferring any benefit concession or immunity on any person other than the person making the declaration under the provisions of the Act
The scheme of the Act makes it abundantly clear that it was to protect only those who preferred to disclose the income they themselves had earned in The past and which they had failed to disclose at the proper time
The scheme only permitted the bringing 850 forward of income to tax it did not require investigation of the claim of the declarant
The Act granted immunity only to the declarant and not to other persons to whom the income really belonged
859 G H 860 A 2
The legal fiction created by sub section
3 of section 24 of the Finance No by virtue of which the amount declared by the declarant had to be charged to income tax as if such amount were the total income of the declarant was limited in scope and it cannot be invoked in assessment proceedings relating to any person other than the person making the declaration and did not take away the power vested in the ITO under section 68 of the Income Tax Act 1961 to reject the  explanation of an assessee for a cash credit on the ground that the explanation was not satisfactory in the case of such other person
861 F G 3
The finality under sub section
8 of section 24 of the Act was to the order of the Central Board of Revenue under sub section
6 thereof and not to the assessment of tax made on the basis of a declaration made by the creditors under the scheme
There was therefore nothing to prevent an investigation into the true nature and source of the cash credits
861 B D 4
The acceptance of voluntary disclosures under s 24 of the Act and the payment of tax thereon by the creditors could not in law justify the deletion of the amount of Rs 46250 as it represented the assessee s income from undisclosed sources
In a case of this description there was no question of double taxation which was a situation of assessee s own making in getting false declarations made in the names of the creditors with a view to avoid higher slab of taxation
once it was found that the income declared by the creditors did not belong to them there was nothing to prevent the same being taxed in the hands of the assessee to which it actually belonged
861 H 862 A B 863 C Manilal Gafoorbhai Shah vs Commissioner of Income Tax Gujarat Badri Prasad  Sons vs Commissioner of Income Tax Allahabad Pioneer Trading Syndicate vs Commissioner of Income Tax Lucknow Bench Allahabad and Additional Commissioner of Income Tax vs Samarathmal Santoshchand Madhya Pradesh approved
Rattan Lal  Ors vs Income Tax officer Delhi Shakuntala Devi  Ors vs CIT Delhi and Mohd Ahsan Wani vs CIT Jammu  Kashmir overruled
The declaration made under sub section
2 of s24 of the Income Tax Act 1961 had to relate to income actually earned by the assessee
It did not require any investigation into the correctness of the declarations or any determination of the amounts belonging to the declarant
The mere charge to tax on the amounts under the Voluntary Disclosure Scheme could not have the effect of converting the money from the deductions from the books of the assessee into the income of The declarants if it did not belong to it
It was therefore open to the Income Tax officer to investigate into the source of the cash credit amounting to Rs 46250 standing in the books of the assessee in the names of the sons of the Managing Partner
859 C D 860 F G 851 1
The making of an assessment against a declarant on his disclosure of statement under section 24 of the Finance No cannot deprive Income Tax officer of jurisdiction to assess the same receipt in the hands of another person if in a properly constituted assessment proceeding under the Income Tax Act the receipt can be regarded as the taxable income of such other person
852 G H 853 A 2
The liability imposed under section 24 of the Finance No is identifiable with the income tax liability under the Income Tax Act
The scheme for voluntary disclosure of income and its taxation is only another mode provided by law for imposing income tax and recovering it
Consequently the general principles which apply to assessments made under the Income Tax Act would except for provision to the contrary be applicable to assessments made under section 24 of the Finance No Accordingly when the assessment to income tax is made under the latter enactment it will be governed by the general principle that a finding recorded therein governs only the particular person assessed
852 B D 3
The finality enacted by subs
8 of section 24 of the Finance No attaches to the assessment of the declarant only
It cannot in law operate in favour of or against any other person
The jurisdiction of an Income Tax officer when making an assessment is concerned primarily with the issue whether the receipt under consideration constitutes the income of the assessee before him
Any finding reached by the Income Tax officer touching a person not the assessee in the process of determining that issue cannot be regarded as an operative finding in favour of or against such person
The only exception of this rule centers on the limited class and for the limited purpose defined by the Supreme Court in Income Tax Officer A Ward Sitapur vs Murlidhar Bhagwan Das at 346
852 D F Ahmed Ibrahim section Dhoraji vs The Commissioner of Wealth Tax Gujarat 1981 3 SCR p 402 and Income Tax Officer A Ward Sitapur vs Murlidhar Bhagwan Das at 346 applied