SUWALAL CHHOGALAL Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) THIS is a reference made by the Income-tax Appellate Tribunal, Bombay, under Section 66(1), Income-tax Act (XI [11] of 1922) at the instance of the assessee, Seth Suwalal Chhogalal of Pulgaon.

(2.) THE question referred to us is : "Whether there was any material before the Tribunal for the finding that Suwalal Bansilal at Gondia was not a genuine firm."

(3.) WHILE Nemichand managed the two family concerns at Gondia he was assisted in the conduct of the business by an employee by name Mohanlal. The aesessee's case is that after Nemichand's separation he found it difficult to manage the grain shop at Gondia as he was living with his family at Pulgaon and hence he admitted Mohanlal as a partner in the grain shop with effect from 3lst October 1940, as evidenced by the registered instrument of partnership dated 5th February 1941. It was, therefore, contended by the assessee on the footing of this instrument that the grain shop at Goindia was no longer a family concern but that of a firm consisting of himself and Mohanlal and consequently the grain shop income should be excluded from this assessment and should be assessed separately as the income of the firm. The Income-tax officer, the Appellate Assistant Commissioner and also the Appellate Tribunal held that the alleged firm was not a genuine firm and it was at the instance of the assessee that this reference came before us.