REGENT COMPUTRONICS PVT. LTD.

COMMISSIONER OF WEALTH TAX Appellant

V/S

Mohan Lal Kapur Respondents

Referred Judgements :-

JUDGEMENT

(1.) FOLLOWING question of law has been referred for opinion of this Court by the Income -tax Appellate Tribunal, Chandigarh respect of asst. yrs. 1981 -82, 1983 -84 to 1985 -86 : "Whether on the facts and in the circumstances of the case, the Tribunal was right in law in allowing deduction under s. 5(1)(iv) of the WT Act, 1957 in respect of assessee's share in land and building of the firm in which he is a partner -

(2.) AS is evident from the facts recorded in the statement of case, the claim of the assessee for deduction under s. 5(1) (iv) of the Act, in respect of his share of assets in immovable property held by the firm, in which he was a partner, was rejected by the AO on the ground that owner of the immovable property was not the assessee but the firm. In appeal before the AAC, the assessee succeeded. The order of the AAC was upheld by the Tribunal in appeal by the Revenue.

(3.) AS to whether partners of a firm have their independent entity as against the firm to which they constitute, the law has been settled by Hon'ble the Supreme Court in N. Khadervali Saheb & Anr. (Decd. by LRs) vs. N. Gudu Sahib (Decd.) & Ors. (2003) 261 ITR 1 (SC) in the following words : "A partnership firm is not an independent legal entity, the partners are the real owners of the assets of the partnership firm. Actually, the firm name is only a compendious name given to the partnership for the sake of convenience. The assets of the partnership belong to and are owned by the partners of the firm. So long as the partnership continues each partner is interested in all the assets of the partnership firm as each partner is owner of the assets to the extent of his share in the partnership."

Click here to view full judgment.

COMMISSIONER OF WEALTH TAX Vs. MOHAN LAL KAPUR

Referred Judgements :-

JUDGEMENT

QUick Links

Get in Touch

Email

Contact Numbers

Address