COMMISSIONER OF INCOME TAX Vs. VIMALBHAI NAGINDAS SHAH

JUDGEMENT

(1.) UNDER section 256(1) of the Income -tax Act, 1961, the Tribunal has referred the following question for our opinion :

(2.) ADMITTEDLY , the question is decided by various decisions of this court. In the present case, the assessee was a partner in the firm named N. Kilabhai and Co., Ahmedabad, in his capacity as karta of a Hindu undivided family. The wife of the assessee was also a partner in the said firm. The Income -tax Officer took the view that because the Hindu undivided family as such could not enter into a contract of partnership but its karta can enter into partnership for the benefit of the Hindu undivided family, the fact that he was a partner in his representative capacity was of no consequence. Therefore, he treated the assessee as a partner as an individual and as his wife was also a partner in the said partnership firm, he held that the provisions of section 64(1)(i) were attracted and the share of income of the wife of the assessee was liable to be included in the total income of the assessee : The dispute pertains to the assessment years 1969 -70, 1972 -73, 1970 -71 and 1973 -74.

(3.) IN view of the aforesaid legal position in this State, we answer the question in the affirmative i.e., in favour of the assessee and against the Revenue.