MOTILAL SANWARMAL Vs. STATE OF ORISSA

JUDGEMENT

(1.) MATRUMAL and Motilal are members of a Hindu undivided family. As H. U. F. they carried on business under the name and style of Matrumal Modi. On 28th June, 1961, there was a disruption of the joint status as evidenced by a registered partition deed. The business was allotted to Motilal. On 2nd March, 1963, Motilal was assessed for the quarter ending 30th June, 1959, under section 12 (5) of the Orissa Sales Tax Act. The assessment was made under section 19 (3) which runs thus :

(2.) THE assessing authorities and the Tribunal held that the business of the Hindu undivided family had discontinued inasmuch as after partition the business which belonged to the joint family became the separate property of Motilal. In his hands, it no longer continued to be joint family business and as such he was liable to be assessed under section 19 (3) in respect of the turnover of sales effected by the joint family during the relevant quarter. The dealer (petitioner) asked for a reference under section 24 (1 ). The application was rejected. He accordingly approached this court under section 24 (2 ). This court framed the following question and called for a statement of the case :-

(3.) THE position, therefore, is that if the integrity of the business continues in the hands of the successor, there is no discontinuance of business even if there be a change in the personnel or the owner of the business. In the present case, the Hindu undivided family had the business. In the partition, it fell to the share of the petitioner. He continued the business in its old form and shape and there was no discontinuance. The petitioner is, therefore, not liable to be assessed under section 19 (3) of the Orissa Sales Tax Act.