SHREEKUNWARDEVI DAGA Vs. L G TRIVEDI

JUDGEMENT

(1.) THESE two petitions raise common question of law and are dealt with together. These petitions challenge the orders of assessments for the assessment year 1962-63, i. e. , account year ending Diwali 1961, and the consequent notices of demand of income-tax dated February 13, 1967. The liability of the petitioners in both the petitions arises on account of their being partners in the firm known as M/s. R. B. Bansilal Abirchand and their minor children being admitted to the benefits of the partnership.

(2.) HIRALAL Daga, husband of the petitioner, Shreekunwardevi, was a partner, holding 1/7th share and Dwarkadas Daga, husband of the petitioner, Radhadevi, was a partner, holding 1/7th share in the partnership firm, M/s. R. B. Bansilal Abirchand, constituted under the partnership deed, dated May 15, 1955. It is alleged in both the petitions that there was an understanding between the parties that the death of a partner will not dissolve the partnership but the partnership business will be carried on with the legal heirs of the deceased partner as partners in place of the deceased partner, the minor being deemed to have been admitted to the benefits of the partnership. The understanding has also been incorporated in the subsequent partnership deed dated December 16, 1957.

(3.) DWARKADAS Daga died on November 4, 1957, leaving behind him a widow, Radhadevi Daga, petitioner and three minor daughters, viz. , (i) Kusumkumari, (ii) Kumudkumari and (iii) Kalakumari. Hiralal Daga died on August 27, 1958, leaving behind him a widow, Shreekunwardevi, petitioner, and two minor sons : (i) Krishnakumar, (ii) Kishorekumar and two minor daughters : (i) Shobakumari and (ii) Nirmalakumari. These were the legal heirs of Dwarkadas and Hiralal under the Hindu Succession Act, which came into force with effect from June 17, 1956, and became absolute owners of their respective shares.