INCOME-TAX OFFICER, AWARD, LUCKNOW vs BACHULAL KAPOOR

The Supreme Court held that the Income-tax Officer has jurisdiction to initiate proceedings under Section 34 of the Indian Income-tax Act, 1922 against a Hindu undivided family (HUF) as it is a distinct assessable entity. The Court clarified that if an HUF has escaped assessment, the Income-tax Officer can issue a notice for the family to submit a return for that year, despite individual assessments of family members. The High Court's ruling that the notice was invalid was overturned, affirming that the same income cannot be assessed again in the hands of the HUF if it has already been assessed in the hands of its members, as per Sections 3, 14(1), and 34(1) of the Act.