KAPURCHAND SHRIMAL vs COMMISSIONER OF INCOME TAX, ANDHRA PRADESH, HYDERABAD

The Supreme Court held that under Section 25A of the Income Tax Act, 1922, an assessment order concerning a Hindu undivided family is invalid if the Income Tax Officer fails to inquire into the validity of a claimed partition within a reasonable time. The Court ruled that the Income Tax Appellate Tribunal can cancel such assessments without directing the assessing authority to modify or issue a fresh order. The outcome was that the Tribunal's cancellation of the assessments was upheld, reinforcing the necessity of proper inquiry into partition claims.