COMMISSIONER OF INCOME TAX Vs. CHAMPAKLAL DALSUKHBHAI

JUDGEMENT

(1.) THIS is a common judgment in I. T. R. No. 61 of 1963, hereinafter referred to as "the first reference" and I. T. R. No. 77 of 1963, hereinafter referred to as "the second reference". All the important materials and even the questions arising in these two references are common, the only material difference being that the assessee in each case is different. It is, however, convenient to deal with both the references by a common judgment and the parties also have not objected to that procedure being adopted. Both the references are under S. 66(2) of the Indian INCOME TAX ACT, 1922.

(2.) THE question of law referred in the first reference is :

(3.) PRIOR to S. Y. 1997 (1940 -41) Champaklal Dalsukhbhai and Mulchand Jambubhai, along with many others, were members of a joint and HUF. All the coparceners of that joint family became divided as on Aso Vad 30, S. Y. 1997. Champaklal as well as Mulchand were assessed to income - tax as individuals in respect of the twelve asst. yrs. 1944 -45 to 1955 -56 relating to the accounting years S. Y. 1999 to S. Y. 2010. Both these references relate to the asst. year 1957 -58, the accounting year being S. Y. 2012, ending on 2nd November, 1956. Each, Champaklal as also Mulchand, was a partner in four firms, the four firms being :