COMMISSIONER OF INCOME TAX Vs. RAMANUJAM THAMPI

JUDGEMENT

(1.) THESE six references are brought before us by the Revenue against the six partners-assessees related to the firm, National Cashew Co., Trivandrum. THESE six partners-assessees are also concerned with the purchase of a grape garden near Hyderabad by the sale deed dated November 16, 1966, for a total consideration of Rs. 2,95,000 allegedly forming a partnership, the sale deed, in fact, mentioning them individually as vendees. Out of the six partners, two were adults and remaining four were minors represented by their guardian father. The consideration amount of Rs. 2,95,000 was drained out through the firm, National Cashew Corporation, Trivandrum. In fact, this Trivandrum firm had an account styled as "Hyderabad Account" showing debits of the payments and in spite thereof, correspondingly the grape garden was not shown as an asset of the firm. With regard to the assessment year 1969-70, the balance-sheet as on March 31, 1969, showed only Rs. 11,071 as due to the Trivandrum firm. This was as against the opening balance of Rs. 3,45,063. This revealed that the bulk of payments were made in the accounting year in question. Correspondingly, in the books of the grape garden accounts, each of the partners--these six assessees--were credited with the profits of grape garden dividend equally between them.

(2.) INITIALLY, the original assessment in respect of these six partners-asses-sees was made without noticing the income from the grape garden. However, the Income-tax Officer, while examining the assessment proceedings of one of them--Shri Mohandas Rajan--found that the interest of these partners-assessees became apparent. This Mohandas Rajan is the assessee as one of the six partners.

(3.) THIS question was brought before this court resulting in an order of remand to the Tribunal for considering the question in the right perspective.