MUKAND LAL Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THESE three writ petitions raise a common point and are therefore consolidated for the sake of convenience. The first two writ petitions, Nos. 1995 and 3069 of 1960, are by Mukand Lal Damodar Das, sons of L. Kanhaiya Lal Sarraf, and they are concerned with the assessment years 1947-48, 1948-49 and 1949-50. The third with petition No. 3068 of 1960 is by Hiralal, son of the aforesaid Mukand Lal Sarraf, and it is concerned only with the assessment years 1948-49 and 1949-50.

(2.) THE question which arise in these petitions is whether the petitioners can be assessed under section 34(1)(b) read with the second proviso to section 34(3) of the Indian Income-tax Act, 1922, hereinafter referred to as the Act, for the aforesaid relevant years in the status of an individual in respect of the share income of the first two petitioners from the firm of Kanhaiya Lal Mukand Lal Sarraf, Raja Darwaza, Varanasi, and the third petitioner, Hira Lal, in respect of his share income from the firm, Kanhaiya Lal Damodar Das Sarraf and Company, Raja Darwaza, Varanasi.

(3.) THE firm of Kanhaiya Lal Hira Lal came into existence on October 5, 1946, and the partners thereof were the petitioner, Hira Lal, with Rs. 0-9-0 share and three outsiders with Rs. 0-4-0, Rs. 0-2-0 and Rs. 0-1-0 shares respectively. Hira Lal also claimed that he was a partner in his individual capacity and not as representative of his Hindu undivided family.