Section 3 of the Income-tax Act does not. it is true, expressly lay down any policy for the guidance of the Income-tax Officer in selecting the association or the members individually as entities in bringing to tax the income earned by the association. G.uidance may still be gathered from the other provisions of the Act, its B scheme, policy and purpose, and the surrounding circumstances which necessitated the legislation. In considering whether the policy or principles are disclosed, regard must be had to the scheme of the Act. Under the Act of 1922 the Income-tax Officer is required to issue a general notice calling upon all persons whose total income during the previous year exceeds the minimum not o chargeable to tax to submit a return of income. The Income-tax Officer may also serve an individual notice requiring a person whose income in the opinion of the Income-tax Officer is liable to tax to submit a return of income. Primarily the return of income would be made by an association, where the association has earned income, ancj the Income-tax Officer would also call upon the association to submit a return of its income, and would ordi- D narily proceed to assess· tax on the return · so made. But for diverse reasons, assessment of the income of the association may not be possible or that such assessment may lead to evasion of tax. It would be open to the Income-tax Officer then to assess the individual members on the shares received by them. The duty of the Income-tax Officer is to administer the provisions of B the Act in the interests of public revenue, and to prevent evasion or escapement of tax legitimately due to the State. Though an executive officer enga~ed in the administration of the Act the function of the Income-tax Officer is fundamentally quasi-judicial. The Income-tax. Officer's decision of bringing to tax either the income of the association collectively or the shares of the mem- r hers of the association separately is not final, it is subject to appeal to the Appellate Assistant Commissioner and to the Tribunal. In Commissioner of Income-tax, U.P. v. Kanpur Coal Syndicate(') it was held by this Court that the Appellate Tribunal has ample power under s. 33(4) to set aside an assessment made on an association of persons and to direct the Income-tax Officer to assess the members individually or to direct amendment of the G assessment already made on the members. Exercise of this power is from its very nature contemplated to be governed not by considerations arbitrary but judicial. The nature of the authority exercised by the Income-tax Officer in a proceeding to assess to tax income, and his duty to prevent evasion or escapement of liability to pay tax legitimately due to the State, constitute. in o::r B judgment, adequate enunciation of principles and policy for the guidance of the Income-tax Officer.
