ASHARFILAL RADHEY SHYAM Vs. COMMISSIONER INCOME TAX

JUDGEMENT

(1.) REFERENCE No. 655 of 1973 relates to the asst. yr. 1961-62 while 84 of 1975 relates to 1962-63 for the same assessee.

(2.) ON 2nd Aug., 1957, there was a partition in a HUF, Hotilal Jagannath. Asharfi Lal, s/o Munnalal (who was one of the members of that H.U.F) received a sum of Rs. 4,000/- in cash and one residential house at this partition. At that time, Ashafi lal was carrying on individual business under the name Asharfi Lal Radhey Shyam. He invested the amount of Rs. 4,000/- in this business. At that time his own HUF consisted of himself, his wife, one major and one minor son and his mother.

(3.) FOR the asst. yr. 1960-61, Asharfilal filed a return in his individual capacity as well as a partner of the firm. An application for registration was also given. The ITO treated the business income to be the individual income of Asharfilal. He held that the partnership was not genuine. But for some reason the application for registration remained pending and we are told that that it has not yet been disposed of. He also doubted the partition effected in the family of Asharfilal on 3rd July, 1959 to be genuine.