COMMISSIONER OF INCOME TAX Vs. GURBUX SINGH DR

JUDGEMENT

(1.) AT the request of the CIT, the Tribunal has referred the following question for our decision:

(2.) THE facts leading to the reference may now be briefly stated. Dr. Gurbux Singh, the respondent -assessee, was being assessed as an individual for the asst. yrs. 1942 -43 to 1961 -62. He was being so assessed in respect of his salary income, property income, dividend income and interest income. The present reference relates to the asst. year 1962 -63, for which the previous year ended on March 31, 1962. During the proceedings for this year, the assessee put forward a claim that all the above items of income, except salary, i.e., the property, dividends and interest was really the income of the HUF, consisting of himself, his wife and his son, Shri Jarnail Singh, who had been born in 1955. This claim, which had not been put forward in the early years, was not accepted by the ITO but the AAC and the Tribunal have accepted the claim and hence the present reference. In the asst. year 1962 - 63, apart from income from property, dividend and interest, there was also an item of capital gain which had to be considered, the capital gain having been made by the assessee on the sale of a property situated at Barakhamba Road, New Delhi, for Rs. 8,80,000.

(3.) DR . Gurbux Singh was born in 1914. It appears that he went to Japan in 1936, with a cousin of his, one Ranjit Singh. There the assessee was able to obtain an agency for the sale in India of the products of M/s Shenogi & Co. The assessee came back to India and entered into a partnership with Shri Jaswant Singh and Ranjit Singh in order to run the business of selling agency. This was done in the name and style of M/s Ranbaxi & Co.