COMMISSIONER OF INCOME TAX Vs. JOY SUKHLAL SETHIA

JUDGEMENT

(1.) THE following question of law has been referred under sub-section (1) of section 256 of the Income-tax Act, 1961 :

(2.) THE assessee, Joysukhlal Sethia, was the karta of the erstwhile Hindu undivided family. THE assessee, as karta of the erstwhile Hindu undivided family, was a partner in the firm, Keshrichand Joysukhlal, and on the first day of the accounting year, a partial partition of the business assets of the Hindu undivided family was made and when this was represented before the Income-tax Officer, the partial partition was accepted under section 171 and even after the partial partition, the Hindu undivided family remained a partner of the firm.

(3.) THE relevant facts are already stated. We are of the opinion that the Tribunal was correct in holding that Shri Joysukhlal Sethia cannot be assessed as an association of persons. In that view, we answer the question in favour of the assessee.