COMMISSIONER OF INCOME TAX Vs. N C MANDAL

JUDGEMENT

(1.) : The CIT has caused the Tribunal to refer the following question to this Court for its opinion :-

(2.) THE facts are admitted and are as follows : Mr. N. C. Mandal who was a senior attorney of this Court had been carrying on his business or profession as an attorney. In 1924 he entered into a partnership with another solicitor, Mr. K. L. Mandal, and both carried on business as attorneys of this Court under the name and style of N. C. Mandal and Co. On 1st March, 1944, two new partners were taken in and the shares were redistributed. Formerly, Mr. N. C. Mandal had 12 annas share. That share was continued. Mr. K. L. Mandal had 4 annas share. That share was reduced to 2 annas. THE two new partners were given one anna each. On 16th March, 1944, Mr. N. C. Mandal retired from his profession. He notified the Incorporated Law Society of his retirement, and gave notice of discontinuance of profession to the Revenue authorities. THE IT authorities contend that he is not entitled to relief under s. 25(3) of the IT Act. THE relevant portion of that section is as follows :-

(3.) WE answer the question put to the High Court in the affirmative, and we hold that the assessee is entitled to relief under s. 25 (3) in respect of his share of income from the firm of N. C. Mandal & Co. for the relevant period 1st March, 1943, to 15th March, 1944.