OSWAL TRADING COMPANY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) IN pursuance of the common orders dated August 12, 1988, of this court in M. C. C. Nos. 105 to 109 of 1986 ([1989] 175 ITR 438), the INcome-tax Appellate Tribunal, INdore Bench, INdore, has referred the following question of law for the opinion of this court :

(2.) A firm in the name of Ghasiram Kalooram was constituted by a deed of partnership, dated October 26, 1973, with partners, Smt. Chandbai, widow of Takhtamal, Shri Manaklal son of Takhtamal, Shri Rajendra Kumar son of Takhtamal and Shri Subhashchandra son of Takhtamal. Another firm was constituted by a deed of partnership, dated January 31, 1975, in the name of Oswal Trading Company with Shri Subhashchandra son of Takhtamal, Smt. Premkumari wife of Manaklal, and Smt. Kusum-kumari wife of Rajendra Kumar, as partners.

(3.) LEARNED counsel appearing for the assessee has argued with reference to the order of the Tribunal that the facts taken into account in coming to the conclusion that the two firms had a common source and a common identity were not sufficient to lead to this inference. According to learned counsel, the two firms were independently constituted of entirely different sets of partners and were having independent business and there was no material before the Tribunal to come to the conclusion that there was unity of control and management and that the subsequently constituted firm was merely an alter ego of the earlier firm.