GAJANAND SUTWALA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE following question of law has been referred for our opinion by the Income -tax Appellate Tribunal, Allahabad :

(2.) THE assessee, Sri Gajanand Sutwala, is a Hindu undivided family. Up to the year 1961 -62 the assessment used to be made on the assessee in the status of an individual inasmuch as he was the sole surviving coparcener. On April 23, 1961, Sri Gajanand Sutwala, however, adopted Sri Hemant Kumar as his son and his status thereafter for purposes of assessment has been accepted to be that of a Hindu undivided family. Sri Gajanand Sutwala was a partner in a firm known as M/s. Ganesh Prasad Dalai as a representative of the Hindu undivided family. The firm, Ganesh Prasad Dalai, was on 19th October, 1960, re -constituted and a deed of partnership was executed on the date. Under the said deed, the various Hindu undivided families which were partners before the said date, ceased to be partners and one representative of each family was taken as a partner. In the case of the assessee, Sri Gajanand Sutwala continued to be a partner in the reconstituted firm. For the assessment years 1962 -63 and 1963 -64, the assessee did not show in his return the share income from the firm, Ganesh Prasad Dalai, on the ground that the said income belonged to Sri Gajanand Sutwala exclusively. The plea of the assessee in this behalf was repelled by the Income -tax Officer and an assessment was made treating the share income of the said firm as belonging to the Hindu undivided family. The order of the Income -tax Officer in this behalf was upheld by the Appellate Assistant Commissioner as also by the Income -tax Appellate Tribunal. The Tribunal in its order dismissing the appeal filed by the assessee held :

(3.) ACCORDINGLY , our answer to the question referred to us is in the affirmative, in favour of the department and against the assessee. The assessee will pay Rs. 200 as costs. The fee of the counsel is assessed at the same figure. Question answered in the affirmative.