GOPAL CHAND SEN Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) This appeal under clause 15 of the Letters Patent involves a short question as to whether the assessee's share of income from a firm, the business whereof was being carried on by the Receivers appointed by a court and the income whereof had been assessed in the income whereof had been assessed in the hands of the Receivers, can be added to the assessee's personal income for computation of his total income under section 16(1) (a) of the Income Tax Act, 1922, for the purpose of determining the rate of taxation. The appeal is directed against the judgment and order dated February 20, 1963, passed by D. Basu, J. in Civil Rule No. 3690 of 1960 dismissing the writ petition preferred by the appellant. It would be necessary to refer to the facts in brief which are set out hereunder.

(2.) Three persons Manmatha Nath Sen, Bholanth Sen and Pramatha Nath Sen carried on a business in the name and style of 'Sen Brothers and Company'. Admittedly each one of them had 1/3rd share in such business. Disputes and differences having arisen, a suit was instituted and Receivers were the said business. For the different assessment years 1950-51 to 1955-56 the income arising out of the said business was assessed in the hands of the Receivers. The assessment order for 1950-51 made annexure B to the writ petition go to show that the assessees were the Receivers Balai Lal Sen and Bibhuti Bhusan Sen of Messrs. Sen Brothers and Company and the assessment was made taking the status of the assessees to be that association of persons. Such assessment is now final.

(3.) It is not in dispute that the Income Tax Officer in assessing Manmatha Nath Sen on his personal income for the aforesaid assessment years 1950-51 to 1955-56 computed his total income by adding his 1/3rd share in the income of the firm Sen Brothers and Company under section 16(1) (a) for the purpose of determining the rate of taxation. It is, however, not in dispute that that part of his income from the business was exempted from taxation under section 14(2) of the said Act.