ISHVERLAL AND BROS Vs. SETH N N ITO

JUDGEMENT

(1.) THE petitioner, M/s Ishverlal & Bros., a partnership firm, has filed this application for obtaining a writ to quash and set aside the notices served upon it under S. 148 of the Indian IT Act, 1922, for the reassessment of its income for the asst. yrs. 1959 60, 1960 61 and 1961 62.

(2.) SHORT facts of the case are that the petitioner is a partnership firm consisting of four partners, who are inter related as brothers. The firm is conducting its business at Surat. It is an admitted position that all the four partners of the petitioner firm have equal shares in profit and loss of the business done by the firm. The petitioner firm is constituted under the partnership deed dated 20th December, 1948.

(3.) NOW the case of the petitioner firm is that from the date of the formation of Bangalore firm, the business done by this firm has ceased to be the business of its branch and, therefore, the income earned by the Bangalore firm cannot be clubbed with the income earned by the petitioner firm at Surat. As against this, the case of the Department is that the Bangalore firm still continued to be a branch of the petitioner firm and, therefore, whatever income is earned by the Bangalore firm should be clubbed with the income earned by the petitioner firm.