LAWS(GAU)-2007-8-41

RADHA KRISHNA JALAN Vs. COMMISSIONER OF INCOME TAX

Decided On August 29, 2007
RADHA KRISHNA JALAN Appellant
V/S
COMMISSIONER OF INCOME TAX Respondents

JUDGEMENT

(1.) THESE appeal under Section 260-A of the Income-Tax Act, 1961 is directed against the order dated 17th September, 2003 passed by the Income Tax Appellate Tribunal, Guwahati Bench, Guwahati in ITA Nos. 49 (Gau)/2001 and 33 (Gau)/2001 relevant to the Assessment Years 1996-97 and 1997-98. The appeals were admitted by this Court by the order dated 10. 9. 2004 for hearing on the following questions of law :

(2.) WE have heard Mr. R. P. Agarwalla, learned senior counsel assisted by Mr. U. K. Barthakur, learned counsel for the appellant and also Mr. U. Bhuyan, learned Standing Counsel for the Revenue.

(3.) M/s Rock International is a partnership firm constituted by a partnership deed executed on 14. 2. 1995 by Shri Radha Krishna Jalan and two others. The firm is engaged in the business of supply and export of rock, stone boulders and other goods including the business of import and export of different commodities. Shri Jalan as per terms of the partnership had a share of 45% in the profit and loss of M/s Rock International. The said Shri Jalan also entered into an agreement with four others on 1. 4. 1995 to constitute a sub-partnership firm, namely M/s Radha Krishna Jalan. The agreement provided that the partners would supplement the fund required to be invested by Shri Jalan in the partnership business of M/s Rock International. The holding of Shri Jalan is at 60% while the remaining four at 10% each.