SANGAM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The facts found and/or admitted in this reference are, inter alia, as follows : M/s. Sangam, Calcutta, the assessee, was constituted by a deed on the 30th January, 1961. One Laxmi Devi and one Naraindas Lakhumal were described in the said deed as partners. Business in piece-goods as also cotton and silk goods were carried on under the said deed in Stall No. G-13, Block "G" in Sir Stuart Hogg Market, Calcutta.

(2.) On the 21st February, 1966, a fresh deed was executed by the parties incorporating the terms and conditions, modified from the earlier deed. The relevant terms are as follows:

(3.) Under the aforesaid deeds Rs. 7,500 and Rs. 12,000 were paid to the said Laxmi Devi during the assessment years 1966-67 and 1967-68, respectively, and were shown as payments on account of her fixed share of profits in the books of the assessee.