THE COMMISSIONER OF INCOME-TAX, ANDHRAPRADESH, HYDERABAD vs K.ADINARAYANA MURTY

The Supreme Court held that a notice issued under Section 34 of the Indian Income-tax Act, 1922, to an assessee in the status of an 'individual' was illegal when the correct status was that of a 'Hindu undivided family'. The Court ruled that the Income-tax Officer was justified in ignoring the first notice and the return filed in response to it, thereby validating the assessment made pursuant to the second notice issued in the correct status. The judgment emphasized that 'individual' and 'Hindu undivided family' are treated as separate units of assessment under the Act.