MANILAL JAMNADAS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the assessee, M/s Manilal Jamnadas, a firm at Bombay, the following question has been referred to us for our determination by the Tribunal under S. 66(1) of the Indian IT Act, 1922 :

(2.) THE question relates to the asst. yrs. 1959 60 and 1960 61, the corresponding accounting years being S.Y. 2014 and S.Y. 2015, respectively. The facts giving rise to the question may be stated : Prior to October 24, 1957, on which date commenced the year of account of the assessee for the asst. year 1959 60, there was a firm called M/s Champaklal Jamnadas. It had come into existence under a deed of partnership dated November 13, 1951. Its partners and their shares were as under :

(3.) IT will thus be seen that the change in the new firm consisted of (a) omission of Champaklal and (b) introduction of four sons of Manilal, two major and two minor sons. Of the minors, Jitendra attained majority on March, 12, 1958. A new deed was then executed on June 20, 1958, under which Jitendra became a fullfledged partner and he bore 7per cent of the loss, there being a corresponding reduction in the loss percentage of his father, Manilal. Except this there was no change by the deed executed on June 20, 1958.