RAMNIVAS HANUMANBUX SOMANI Vs. VENKATARAMAN S ITO

JUDGEMENT

(1.) IN the year 940 Nathmal Hazarimal, Ramprasad Benilal, Rameshwar Mahadeo and the Petitioner formed a partnership and commenced carrying on business in the firm name and style of Motilal Somani and Co. In or about 1946 one of the partners, Ramprasad Benilal, died and thereupon a fresh partnership was formed in the year 1947 with the three surviving partners and a new partner by the name of Puranmal Pannalal. In 1948 this partnership was also dissolved and fresh partnership was formed with the said Puranmal Pannalal and the Petitioner only as the partners although the same business, it would seem, was continued and the same name, viz., Motilal Somani and Co., was also continued. The partnership was dissolved in 1955. Upon the said dissolution the Petitioner carried on the said business in the name of Motilal Somani and Co., as the sole proprietor thereof. It is not in dispute that in spite of the changes made in the constitution of the firm of Motilal Somani and Co. the same business was carried on all throughout. Even when the Petitioner carried on business in the name of Motilal Somani and Co. as the sole proprietor thereof, the business so carried on by his was the same business as was carried on by the partnership of M/s. Motilal Somani and Co. since 1940.

(2.) ON the 15th of December, 1955, the Petitioner informed the Income -tax Department that the firm of M/s. Motilal Somani and Co. was dissolved as from 14th November, 1955, and that on and after the 15th of November, 1955, the business carried on by that firm prior to its dissolution had become the sole proprietary concern of the Petitioner. It may also be observed that the business carried on by the Petitioner on and after the 15th of November, 1955, was continued by him in the same premises where the firm of M/s. Motilal Somani and Co. prior to its dissolution was carrying on the said business.

(3.) THE petitioner has filed this present petition to have the notices under section 34 and section 22(4) of the Income -tax Act set aside.