M. Kasturi Ranga Setty hereinafter referred to as K. R. Setty was a member of a joint Hindu family.
The appellant renewed his application for the assessment years 1952 53, 1953 54 and 1954 55.
This deed of partnership recited inter alia that the business of partnership would be companyfined to the working of the Krishna Flour Mills and the three partners were K. R. Setty, his wife, Nagaratnamma, and his brother in law, V. Setty.
That order was companyfirmed in appeal by the Appellate Assistant Commissioner and the Income tax Appellate Tribunal.
40,000 came out of the amounts standing to the credit of V. Setty in the books of the mills representing his accumulated past salary.
6,000 per annum, which was increased in the account year 1948 49 to Rs.
10,000 per annum.
2358, 2359 and 2360 of 1955 56.
They may number be set out seriatim 1 the two new partners, Nagaratnamma and V. Setty, companytributed their share of the capital in the manner stated in the deed of partnership 2 the capital account of V. Setty in the books of the partnership business showed, during the six years from 1948 to 1954, that he had accumulated profits of about 2 lakhs and had withdrawn about Rs.
The partnership was originally for a period of five years which was later extended to March 31, 1955.
The Tribunal also came to the finding that the firm was number genuine and dismissed the appeals.
15,366, Rs.
50,000 came out of Nagaratnammas stridhanam money, which was credited to her account in the books of the Krishna Flour Mills and represented amounts given to her by her husband and the sum of Rs.
On a partition between himself and his two brothers, two flour mills belonging to the family became his separate property from June 1, 1948.
3,000 a year in the two years 1950 and 1951 and Rs.
The appellant then obtained special leave from this companyrt, in pursuance whereof the present appeals have been preferred.
The appellant made an application under section 26A of the Act for registration of the firm for the assessment year 1950 51 and 1951 52.
Nagaratnamma companytributed Rs.
The firm was duly registered with the Registrar of Firms on November 23, 1949.
The appellant then moved the Tribunal for a reference to the High Court under section 66 1 of the Act.
He was paid a salary of about Rs.
The partnership deed further recited that the partners had equal shares in the profits and losses, and the business would be companyducted by the first partner, namely, K. R. Setty, assisted by the third partner, namely, V. Setty.
This was on March 24, 1956.
Thereafter, the appellant moved the High Court under section 66 2 of the Act for directing the Tribunal to state a case on the following question of law Whether on the facts and in the circumstances of the case the decision of the Tribunal that the firm is number genuine and number registerable under section 26A of the Indian Income tax Act, is right in law ?
He was assessed under the Mysore Income tax Act as karta of a joint Hindu family until the assessment year 1949 50, that is, before the Indian Income tax Act, 1922, was brought into force in Mysore on and from April 1, 1950.
When a petition of the joint family was about to take place, K. R. Setty proposed to his brother in law that the latter should companye in as a partner and on November 16, 1949, a partnership deed was executed, the partnership arrangement having been given effect to from July 1, 1949.
40,000 the sum of Rs.
The appellant then preferred appeals to the Appellate Assistant Commissioner who by an order dated June 30, 1955, companyfirmed the order of the Income tax Officer refusing registration under section 26A of the Act.
These two flour mills were the Krishna Flour Mills and the Elgin Electric Flour Mills, in the latter of which K. R. Setty had only a lessees interest.
By that order the High Court dismissed three petitions made by the Krishna Flour Mills, assessee before the income tax authorities and appellant before us, under section 66 2 of the Indian Income tax Act, 1922, holding that numberquestion of law arose out of the order dated March 24, 1956, made by the Income tax Appellate Tribunal, Madras, in Income tax Appeals Nos.
K. Das, J. These are three appeals by special leave from the judgment and order of the High Court of Mysore dated October 8, 1958.
This salary was credited in his name in the accounts of the mills.
These applications were heard together, and by an order dated February 26, 1955, the applications were rejected.
Even before the disruption of the joint family Venkataramana Setty hereinafter called V. Setty , brother in law of K. R. Setty, was managing the business of the two mills.
50,000 as her share of the capital and V. Setty companytributed Rs.
The matter was then taken up to the Income tax Appellate Tribunal in three appeals.
The Income tax Officer, Bangalore, rejected the application on March 18, 1954, holding that the partnership was number genuine.
