COMMISSIONER OF INCOME TAX Vs. TAJ OIL TRADERS

JUDGEMENT

(1.) ON a reference under Section 256(2) of the Income-tax Act, 1961, the Income-tax Appellate Tribunal, Jaipur, has referred the following question for our opinion :

(2.) THE assessee has shown a deriving income from the trading of edible oils. THE books of the assessee were seized under Section 131(3) of the Income-tax Act, 1961. From the record it was found that the firm existed only on paper as it did not carry on any business. THE business was found to have been conducted by Shri Chula Ram, one of the partners of the firm. THErefore, the assessee-firm was taxed on protective basis and the income in the name of Taj Oil Trading was taxed in the hands of Chula Ram.