GOKULDAS Vs. KIKABHAI ABDULALI

JUDGEMENT

(1.) THIS Reference which arises out of some extremely unusual facts has brought to light the difficulty of finding within the framework of the Indian Income-tax Act machinery for determining the liability of an alleged partner in an unregistered firm.

(2.) THE assessee in this case was an unregistered firm, and one Gokuldas made a Return for the assessment years 1945-46 and 1946-47. The Income-tax Officer completed the assessments on 24-7-1947. Gokuldas had produced before the 'x. T. O. what purported to be a Deed of Partnership and in this Deed one Kikabhai was shown to be one of the partners. The X. T. O. accepted the Deed and passed an assessment order, but before this order was made on 6-7-1947 Gokuldas had made an application to the I. T. O. in, the following terms :

(3.) AGAINST these orders of the I. T. O. appeals were filed by Gokuldas before the Appellate Assistant Commissioner; and one of the grounds of appeal was as follows :