COMMISSIONER OF INCOME TAX Vs. LAXMI TRADING CO

JUDGEMENT

(1.) THIS is a reference made by the Appellate Income-tax Tribunal stating the following question for determination of this Court :-

(2.) RAM Pershad a wholesale dealer was a partner in the Wholesale Cloth Association, Ludhiana, in his individual capacity. His brother in law, Gopal Das, was in charge of his affairs in the Association and was the employee of the Association on a monthly salary of Rs. 200 On the 1st April, 1947 a deed of partnership was drawn up by which Gopal Das became a partner in the share of RAM Pershad in the Association and this firm was called "Laxmi TRading Company". There was no change in the constitution of the Wholesale Cloth Association as a result of the introduction of Gopal Das. The Laxmi Trading Company applied for the assessment year 1948-49 for registration under Section 26A of the Income-tax Act. The registration was refused by the Income-tax authorities but on appeal to the Appellate Tribunal the firm was directed to be registered under Section 26A and on the application of the Commissioner of Income-tax, the question which I have quoted above has been stated for the opinion of this court.