IQTIDA KHAN Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioner and his brother. Sri Mohtida Khan, were the two partners entitled between them to the business carried on under the title 'Muqtida Khan Iqtida Khan' at Lucknow. THEy were entitled each to a moiety share. Mohtida Khan, however, migrated to Pakistan with the result that he was declared an evacuee and all his property including his half share in the firm 'Muqtida Khan Iqtida Khan' was held as evacuee property. THE share of Mohtida Khan, however vested in the Custodian. In due course it seems that proceedings were taken in respect of the property of the firm and other property of Mohtida Khan evacuee under the Evacuee Interest (Separation) Act, 1951. This ended in the sale by auction of the assets of the firm which were arrived at after deducting its liabilities and also the sale of its goodwill. THE following order passed by the Competent Officer dated 19-3-53 may be quoted:

(2.) SUBSEQUENT to the making of the assessment and in pursuance of the order of the Competent Officer, already quoted earlier, the assets of the firm, including its goodwill, were auctioned and purchased by the petitioner. It is urged that the purchase of the goodwill and the assets of the firm, which the petitioner made in pursuance of the order of the Competent Officer, were free from encumbrance for any tax which might have been payable by the different partners in respect of the business of the firm for the period previous to the sale.

(3.) ON behalf of the respondent our attention has been invited to Section 44 of the Indian Income-tax Act, 1922 which provides as under :