MURLIDHAR KISHANGOPAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN this reference by the INcome-tax Appellate Tribunal pursuant to an order made by this Court on 5 August 1957 on an application filed by the assessee under section 66 (2) of the INdian INcome-tax Act, the question formulated for our decision is:

(2.) THE facts of the reference are as follows : In the assessment year 1950-51 the assessee Messrs. Murlidhar Kishangopal of Indore made an application under Section 26-A of the Act for registration of their partnership firm as constituted by deed of partnership dated 3 February 1949. It was stated by the assessee that Murlidhar Jhavar and his six sons were members of a joint Hindu family carrying on business in money lending and speculation: that the family disrupted on 29 October 1948: and that subsequently Murlidhar and his sons formed a partnership and executed a deed of partnership on 3 February 1949. THE Income-tax Officer rejected this application.

(3.) THE question whether on the circumstances relied on by the Tribunal, the Assistant Appellate Commissioner, and the Income-tax Officer an inference about the existence and genuineness of the partnership can be drawn in this case is not a question of fact. THE inference to be drawn is as regards the legal effect of the facts and circumstances found in the light of the provisions of the Partnership Act and of the personal law of the parties. This is a mixed question of law and fact. On a consideration of all the circumstances of the case we are of the opinion that there was no material on which the finding of the taxine authorities that the firm was not genuine can be rested.