COMMISSIONER OF INCOME TAX Vs. CHITRA PALAYAKAT CO

JUDGEMENT

(1.) THIS reference relates to the assessment years 1958-59 and 1959-60. There are two sets of questions for the two years. We would reproduce the question relating to the assessment year 1958-59 as the questions for 1959-60 are identical. The relevant questions for 1958-59 are :

(2.) IT is not in dispute that the question of penalty is completely dependent upon the answer to the reference on the assessment. If the answer is favourable to the assessee, then the penalty would have to be deleted.

(3.) THE learned counsel, for the Commissioner contended that in the case of a firm it was enough if some part of the control, was located in India and that in the present case, the exercise and control, at any rate in part, could have been in India as the managing partner was in India. His further submission was that the earlier order of the High Court in this very case should have been followed by the Tribunal so has to hold that the assessee was a resident firm.