PREM NATH Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) THOUGH the Income-tax Reference No. 11-D of 1964 raises a common question with some other Income-tax References being Nos. 9-D, 10-D of 1964 and Nos. 31-D and 35-D of 1963, yet we are dealing only with the, Income-tax Reference No. 11-D of 1964 leaving it to the Division Bench to deal with other references in the light of the decision given by the Full Bench in this reference.

(2.) The question referred to the Full Bench is whether on the facts already stated by us the allowance paid to Shri Prem Nath by Messrs. K. C. Raj and Company is to be treated as his individual income or the income of the Hindu undivided family of which he is the Karta ?"

(3.) SHRI Prem Nath (H. U. F.) hereinafter for convenience referred to as the assessee, is a Hindu undivided family represented by its Karta Prem Nath. The said Prem Nath representing the interest of the assessee became a partner in the firm styled as Messrs, K. C. Raj and Company. He was also a partner in the sub-partnership styled as Messrs. Kishan Lal. Clause 7 of the partnership agreement constituting the firm Messrs. K. C. Raj and Company entered into between Messrs. Kishan Lal, Prem Nath, Balkishan and Smt. Ram Piari, provides, --"