CHITRA CINEMA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the assessee, Messrs. Chitra Cinema, Varanasi, this court by its order dated 16th of May, 1966, called upon the Income-tax Appellate Tribunal, Allahabad, to submit a statement of the case under Section 66(2) of the Indian Income-tax Act, 1922, in respect of the following question:

(2.) THE assessee, Messrs. Chitra Cinema, Varanasi, claims to be a partnership concern and the relevant assessment years are 1958-59 and 1959-60. This firm was constituted under a partnership deed dated 2nd May, 1957. It consisted of three partners, namely, Sri Jyoti Bhushan Gupta, his wife, Smt. Sulabha Devi Gupta, and their son, Anil Kumar Gupta.

(3.) IN appeal, the Appellate Assistant Commissioner came to the conclusion that prior to November 2, 1956, Chitra Cinema was being run as proprietary business of Sri Jyoti Bhushan Gupta, On that date no change in his status took place and Sri Jyoti Bhushan Gupta continued to run the business in his capacity as an individual. IN the result the appeal filed by the assessee was dismissed, but the INcome-tax Officer was directed to assess the business carried on in the name of Chitra Cinema as belonging to the individual, Sri Jyoti Bhushan Gupta, and not as belonging to an association of persons as held by the INcome-tax Officer.