COMMISSIONER OF INCOME TAX CENTRAL Vs. GENERAL TEXTILES

JUDGEMENT

(1.) This reference under Section 256(1) of the Income-tax Act, 1961, relates to the assessment of a registered firm. The firm donated Rs. 8,000 to a charitable trust and claimed rebate under Section 88 of the Act. The Income-tax Officer allowed the said claim.

(2.) The firm contended that the above rebate should also be granted to its partners. As the income-tax Officer rejected the said claim, the firm filed an appeal, but the Appellate Assistant Commissioner dismissed it on the ground that it was not an appealable order. On further appeal, the Appellate Tribunal held that the appeal lay and the partners were eligible for relief under Section 88 of the Act. We are now concerned with the following questions :

(3.) Section 67 of the Act provides for computation of the total income of an assessee who is a partner of a firm. Section 182 provides that in the case of a registered firm, the firm's total income should be assessed first and then the income-tax payable by the firm shall be determined and the share of each partner in the income of the firm shall be included in his total income and assessed to tax.