CHARANDAS HARIDAS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) CHARANDAS Haridas (assessee) was a Hindu undivided family, consisting of Charandas, the 'karta' and his three minor sons, Anil Kumar, Rameshchandra and Gautamkumar and his wife, Shantagouri. The assessee had a share in six managing agency firms and the income arising to the assessee from the agency firms was being assessed as the income of the assessee. In the course of the assessment proceedings for the assessment year 1947 -48 and 1948 -1949, the assessee contended that a partial partition had taken place in respect of this asset and that, therefore, the share income from the managing agency firms had ceased to be the income of the assessee as from 1 -1 -1946.

(2.) IN support of this claim a memorandum dated 11 -9 -1946, signed by Charandas and his wife was produced before the Income -tax Officer. The memorandum was in the following terms:

(3.) AFTER deducting these Re. 0 -1 -105/12 and Re. 0 -1 -111/2 commission remained. These commissions and other commission received from various other mills have been partitioned orally by us on Samvat 2002 Magsar Vadi 12 dated 31 -12 -1945. By this partition we decided that whatever commission fell due till 31 -12 -1945, and which is received after 31 -12 -1945 should be kept joint and in respect of the commission which accrues from 1 -1 -1946, and received after that date each of us become absolute owner of his one -fifth share and therefore from that date i.e. 1 -1 -1946, these commissions cease to be the joint property of our family. But it is our desire that we should keep a memorandum for our memory of the oral partial partition effected on Samvat 2002 Magsar Vadi 12 dated 31 -12 -1945, pursuant to which we have partitioned the commissions to be received by our family. Because of this we keep this note.