VIJAYALAKSHMI TALKIES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS reference sought by the assessee known as Vijayalakshmi Talkies, Bangalore, under section 66(1) of the Indian Income-tax Act, 1922, has for its source an application for registration made by the assessee under section 26A of the Act in respect of the assessment year 1961-62.

(2.) IT is submitted that in the year 1953 a business in partnership under the name and style of Vijayalakshmi Talkies was commenced, and that partnership carried on business in the exhibition of films. The partners of that firm were two brothers, Krishna and Narasimhan. For the purpose of their business, they obtained on lease a theatre from a certain Mandakini Bai.

(3.) BUT the more important provision in the partnership deed was that, immediately the firm earned a net profit of Rs. 1,00,000, the five brothers should retire from the partnership.