LAWS(ALL)-2004-8-167

COMMISSIONER OF INCOME TAX Vs. SURENDRA KUMAR GUPTA

Decided On August 12, 2004
COMMISSIONER OF INCOME-TAX Appellant
V/S
SURENDRA KUMAR GUPTA Respondents

JUDGEMENT

(1.) The Income-tax Appellate Tribunal, Allahabad, has referred the following two questions of law under Section 256(1) of the Income-tax Act, 1961, hereinafter referred to as "the Act" for the opinion of this court:

(2.) The present reference relates to the assessment year 1976-77 for which the relevant previous year ended on March 31, 1976.

(3.) The late Shri Prabhu Dayal, the father of the assessee, and one Shri Radhey Shyam Agrawal, had jointly purchased a cinema building from M/s. Bombay Theatres Ltd., on February 20, 1958, for a sum of Rs. 1,22,400. Subsequently, they purchased machines and furniture, etc., also jointly and started running the cinema in partnership with each other with effect from November 2, 1958, each having a half share. On January 26, 1967, Shri Prabhu Dayal died. By the "will" of the same date of Shri Prabhu Dayal, all his properties passed on to the assessee. The assessee and Shri Radhey Shyam Agrawal agreed to form a new partnership with effect from January 30, 1967. Accordingly, the business of Ajanta Talkies was run by a firm with effect from January 30,1967, with the assessee and Shri Radhey Shyam Agrawal as equal partners. A partnership deed was duly executed on January 30, 1967.