COMMISSIONER OF INCOME TAX Vs. PRAKASH RAM GUPTA

JUDGEMENT

(1.) THESE two references under Section 66(1)of the Indian Income-tax Act, 1922, have been heard together and this judgment will govern both the cases. The question of law, which has been referred to this court covering both the cases, is as follows :

(2.) THE relevant facts are as follows :

(3.) IT is contended by the learned counsel for the Commissioner of Income-tax that the formation of the partnership in question amounted to a transfer of the privilege given to Sri Prakash Ram Gupta under Section 22 of the Excise Act, that is to say, the excise licence, and secondly, the business of the two shops mentioned in the partnership deed having been transferred by Sri Prakash Ram Gupta to the firm, there has been a contravention of Section 23 of the Excise Act. The first question raised by the learned counsel is fully answered by the Supreme Court decision of Umacharan Shaw & Bros. v. Commissioner of Income-tax, 1959 37 ITR 271. The following observations of their Lordships at page 276 may be noted :