HASSAN KASSAM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) S iS a reference under Section 66(1) the Indian Income-tax Act by the Appellate Tribunal, Calcutta Bench, aSking the Court to anSwer the following queStion :- "Do the termS of Section 25 (4) apply in a caSe where an aSSeSSee admitS partnerS to a buSineSS hitherto carried on by himSelf individually

(2.) ADMITS facts may be shortly stated. The assessee is the legal representative of the deceased Kassam Manji of Chaklia Gunj, Cuttack. The deceased started a busiuess on the 11th November, 1920, under a partnership deed, his partners being his three brothers Karmali, Ratansi and Saleh Mohammad and his so Alidina Kassam. In 1921 the share of Alidina was increased, and Hassan Kassam, another son of the deceased, was admitted into the partnership. Ratansi died in 1922, but the business was continued by the remaining partners. In the next year Alidina restired from the business. In 1926 Karmali and Saleh Mohammad also retired and Hassan Kassam also ceased to be a partner with the result that in and from that year Kassam Manji became the sole proprietor of the business. On these facts it has been found that the partnership was dissolved in 1926. On the 30th of October, 1940, by way of a family settlement, the deceased Kassam Manji admitted his four sons, Hassan, Hussain, Parali and Nazirali, and his son-in-law Hussain Ali, as partners in the business which was carried on by him as the sole owner from 1926.

(3.) THESE circumstances it is impossible to give a satisfactory answer to the question raised, and, therefore, under the provision of Section 66 ($) the case must be feferred back to the Appellate Tribunal so that they may, after hearing the parties, submit to us their findings on the following questions :-