SUNIL KRISHNA PAUL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference under s. 66(1) of the Indian IT Act, 1922. The assessment year is 1959-60, the corresponding previous year being 1365 B. S. Two persons named Anil Krishna Paul and Jogendralal Nandy had acquired a right of receiving commission of 1 per cent. on sales by M/s Annapurna Cotton Mills Ltd. by an agreement dt. the 26th Jan., 1950. Jogendralal Nandy died on 7th June, 1950. Thereafter, the benefits of the agreement with the said cotton mills were transferred to the present applicants, Sunil Krishna Paul and Amar Krishna Poddar, by a deed of assignment dt. the 10th Dec., 1951. The deed of assignment was executed by Anil Krishna Paul and the legal heirs of Jogendralal Nandy. As consideration for the assignment the applicants had to pay a sum of Rs. 50,000. Thereafter, on 9th Aug., 1954, the two assignees, Sunil Krishna Paul and Amar Krishna Poddar, entered into an agreement of partnership to share the aforesaid commission.

(2.) FOR the asst. yr. 1959-60 the assessee-applicants, viz., Sunil Krishna Paul and Amar Krishna Poddar, claimed before the ITO that their status should be taken as that of a firm. The ITO rejected the claim and determined that these two persons constituted an "AOP".

(3.) IN these premises, the following question has been referred to us :