MADANLAL JAJODIA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference under s. 66(2) of the Indian IT Act. The assessee is Sri Madanlal Jajodia, and the year of assessment is 1948-49. The assessee was a partner in a number of firms. It was held by the ITO that the assessee was a partner in a firm named National Trust Co. having an 8 annas share therein. The assessment of the firm of National Trust Co. was completed by the ITO. In that assessment, Madanlal Jajodia contended that he was not a partner in his individual capacity, but that he represented the firm of Madanlal Sohanlal, and, therefore, the income was that of Madanlal Sohanlal. This contention was rejected. Before the AAC the assessee succeeded. The AAC held that the income should be allocated to Madanlal Sohanlal. The Tribunal, however, did not agree with this finding and held that it was the income of the assessee.

(2.) THE question, however, that has been referred to us is in a very limited form, and runs as follows :

(3.) THAT being so, the question that has been put before us must be answered in the affirmative. In other words, under the second proviso to s. 30(1) it is not open to the assessee in his own individual assessment to dispute the finding of the ITO as regards the constitution of the National Trust Co.