COMMISSIONER OF INCOME TAX Vs. DHANIRAM GUPTA

JUDGEMENT

(1.) DHANIRAM Gupta the assessee, was assessed to income-tax in the status of an individual for the asst. yr. 1966-67, the corresponding accounting year ending on the 31st Dec., 1965. The assessee claimed to be a partner of a firm named DHANIRAM Gupta & Co. constituted by and between the assessee and one Kian Tan under a Deed dt. 20th Nov., 1956.

(2.) THE ITO found that on the same day another Deed had been executed amongst Kian Gwan Co. (Cal) (P) Ltd. (hereinafter referred to as the company, the assessee and the said Kian Tan recording that the company will be the real partner in the firm and Kian Tan, would represent the company in the partnership.

(3.) BEING aggrieved, the assessee preferred an appeal against the assessment before the AAC. An order dt. 20th May, 1972 had been passed by the AAC in respect of the firm where it was held that the registration granted to the firm had been wrongly cancelled for the earlier assessment year. By the said order the assessment of the firm, had also been set aside with a direction to make fresh assessments. Relying on the said order the CIT(A) held that the ITO was not justified in including the entire income of the firm in the income of the assessee. The ITO was directed to included in the income of the assessee only his share of profits in the firm. The appeal of the assessee was allowed.