KRUTARTHA ACHARYA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference by the Income-tax Tribunal, Calcutta Bench, under Section 66 (1) of the Indian Income-tax Act.

(2.) THE material facts are as follows: One Kruthartha Acharya was formerly carrying on the business of manufacturing and selling handloom cloth, under the name of Sambalpur Bastralaya. Subsequently in 1945, he decided to convert the business into a partnership taking some of his erstwhile employees as his partners. Accordingly on 27-12-1945, a deed of partnership (Ext. A-1) was drawn up, in which he and four other employees were mentioned as partners. THE fifth partner was said to be one Rabindra Nath Pradhan minor son of one Krishna Chandra Pradhan. THE shares of the various partners were specified in this document. Subsequently, on 25-7-1951 the same partners executed another deed of partnership (Ext. A) in which it was recited that as the partnership deed of 1945 was not drafted properly and there were many legal and technical difficulties, the necessity arose for executing a fresh deed of partnership.