LexOMMISSIONER OF INCOME-TAX, U.P., LUCKNOW versus KANPUR COAL SYNDICATE
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8 S.C.R. SUPREME COURT REPORTS commencement of the amending Act. The Legislature has given to s. 18 of the Finance Act, 1956, only a limited retrospective operation i.e., upto April 1, 1956, only. That provision must be read subject to the rule that in the absence of an express provision or clear implication, the Legislature does not intend to attribute to the amending provision a greater retrospectivity than is exrressiy mentioned, nor to authorise the Income•tax Officer to commence proceedings which before the new Act came into force had by the expiry of the period provided, become barred. The appeal fails and is dismissed with costs. Appeal dismissed. COMMISSIONER OF INCOME-TAX, U.P., LUCKNOW v. KANPUR COAL SYNDICATE (K. SUBBA RAO, J. C. SHAH AND S. M. S!KRI, JJ.) Income Tax-Assessment on Association of persons or on members indi· vidually-Option to appropriate authority-Right of appeal, whether such assessee has--Powers of Tribunal and Appellate Assistanl Commissioner in Appeal-Income-tax Act, 1922 (11 of 1922), n. 3, 14(2) (b) 30, 31 and 33. Income-tax was assessed upon the total income in the hands of tho respondent-assessee, an association of several persons combined to- gether for the purpose of purchase of coal and its supply to customers for domestic purposes and other small scale industries. The assesseo claimed that it should not be assessed to tax as an association of persons, but the proportion of the income in the hands of each members of the association might be assessed to tax instead. The Income-tax Officer refused this request and an appeal to the Appellate Assistant Commis- sioner was dismissed. The Income-tax Appellate Tribunal, on a further appeal. held that though the Income-tax Officer had power to assess income of the association of persons as such or in the altematiye on the individual members thereof in respect of their proportionate sharo fn the income, the tribunal had no power under the Act to direct tho Income-tax Officer to exercise his power in one way or other. On a 196' Lal orul Co. Y. s. s. Gadill Sltah J. 1964 April, 30. 1964 CJ.T. v. Kanpur Coal Syndical• 86 SUPREME COURT REPORTS [rg64] reference, the High Court held that the Appellate Tribunal had power to set aside the Income-tax Officer's assessment against the usocia1io4 and to give consequential and ancillary 'directions to the said officer to assess individuala. HBLD:-(i) Section 3 of the Income-tax Act impliedly gives an option to an appropriate authority to assess the total income of either the association of persons or the members of such association indivi- dually. Commissioner of Income-tax v. Reddy Mallaram, (1964) SI I.T.R. 285 (S.C.) followed. (ii) 3uch an assessee has a right to appeal under s. 30 of the Act against the order of the Incom.,.tax Officer assessing the association of persons instead of the members individually. (iii) The Appellate Tribunal has jurisdiction to give directions to the appropriate authority to cancel the assessment made on the associ.a· lion of persons an'd to give appropriate directions to the authority con- cerned to make fresh assessment on the members of that associationa individually. The phraseology used both ins. 31 ands. 33 does not restrict the powers of the Appellate Ass:stant Commissioner or the Appellate Tribunal; both have the power of such direction. CIVIL APPELLATE JURISDICTION: Civil Appeal No. 673 of 1963. Appeal from the judgment and decree dated September 22, 1960, of the Allahabad High Court in Income-tax Mis- cellaneous Case No. 188 of 1953. S. K. Kapur and R. N. Sachthey, for the appellant. Veda Vyasa and Naunit Lal, for the respondent. April 30, 1964. The Judgment of the Court was delivered by Subba Rao 1. SUBBA RAo, J.-The question for decision in this appeal is whether when the Income-tax Officer in his discretion assessed an association of persons to income-tax, the Appel- late Assistant Commissioner iii appeal or the Income-tax Appellate Tribunal in further appeal can set aside that order and direct him to assess the members of that association individually. The facts lie in a small compass and they are .as follows: The assessee consisted of several persons combined together for the purp<ise of purchasing coal in order to supply the 8 S.C.R SUPREME COURT REPORTS same to customers for domestic purposes and other small scale industries. For the assessment yea
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