INCOME-TAX OFFICER, GORAKHPUR vs RAM PRASAD AND ORS.

The Supreme Court ruled that under Section 14 of the Excess Profits Tax Act, 1940, assessments must be made on individuals or partnerships carrying on business jointly, and not on a Hindu Undivided Family (HUF) post-partition. The Court held that Section 44 of the Indian Income Tax Act, 1922, applies only to firms and associations, and since an HUF is a separate entity, the notices issued for assessment were invalid. Thus, the appeals were dismissed, affirming the lower court's decision.