COMMISSIONER OF INCOME TAX Vs. MADAN LAL MEHRA

JUDGEMENT

(1.) IN respect of the asst. yrs. 1972 -73, 1973 -74 and 1975 -76, the Tribunal has referred the following questions of law to this Court :

(2.) THE firm, M/s Madan Lal Jagdish Chand, has six partners. Originally, the assessment was made in respect of each partner, but vide order dt. 9th Sept., 1975, in respect of the asst. year 1972 -73, the CIT exercised his revisional jurisdiction under S. 263 of the INCOME TAX ACT, 1961, and directed that a fresh assessment is to be refrained. Thereafter, a fresh assessment was made, and the total income was assessed in the hands of the assessee.

(3.) IT appears that some other partners of this firm have similarly made declarations seeking to impress their share in the partnership with the character of joint family property. They also succeeded before the Tribunal and the matter came up before this Court in IT. Refs. Nos. 57 to 62 of 1980 (CIT vs. Shri Jagdish Chand Khanna). Following an earlier decision of this Court in the case of CIT vs. Kishan Lal (1980) 17 CTR (Del) 152 : (1980) 124 ITR 19 (Delhi), it was held in J. C Khanna's case that the share had been impressed with the character of joint family property and, therefore, the income would not be assessed in the individual's hands. The facts in the present case are identical to the facts of J. C Khanna's case. Both the present assessees and J. C. Khanna were the partners of the same firm, namely, M/s Madan Lal Jagdish Chand, and following the decision of this Court in IT Refs. Nos. 57 to 62 of 1980, decided on 24ht Sept., 1987, the questions of law are answered in the affirmative and in favour of the assessee. There will, however, be no order as to costs.