COMMISSIONER OF WEALTH TAX Vs. YESHODHARA K K

JUDGEMENT

(1.) THE following question has been, at the instance of the Revenue, referred to us by the Income-tax Appellate Tribunal, Cochin. Bench :

(2.) IT is admitted by the assessee that the amount in question, namely, current account balance, represents accumulated undrawn profit. This amount constitutes the assets of the partners and assessable in their hands in proportion to their respective shares (see CIT v. P.R.A.L. Muthukaruppan Chettiar [1935] 3 ITR 208 (PC)).

(3.) IN the circumstances, we answer the question in the negative, that is, in favour of the Revenue and against the assessee.