A third brother of Nandlal also joined the Banaras firm, but he did number bring any capital.
The partners of the Banaras firm were the partners of the firm at Bombay, an outsider from Banaras and a third brother of Nandlal.
K. DAS, J. This is an appeal by special leave from the judgment and orders of the High Court of Bombay dated February 16, 1955, in a reference under section 66 1 of the Indian Income tax Act, 1922, hereinafter called the Act.
1,50,000 was sent from Wadhwan to Bombay.
For the assessment year 1945 46 the Income tax Officer held that the Hindu undivided family of Gandalal was resident in the taxable territories namely, British India , and hence he included the sum of Rs.
was delivered by S. K. Das, J. Hidayatullah, J., delivered a separate Judgment.
1,50,000 in the income of the family under s. 4 1 b iii of the Act as having been brought into or received in British India in the relevant year and made an assessment on that basis.
On further appeal, the Appellate Tribunal, Bombay, held that Nandlal was still a companyarcener and number a separated member, because the partition which was set up by him was number meant to be acted upon.
Appeal by special leave from the judgment and order dated February 16, 1955, of the Bombay High Court in Income tax Reference No.
The assessee appealed to the Appellate Assistant Commissioner, Bombay, but without success.
1,00,000 was given to each son by the father and the sums of money received on June 8, 1944, and June 29, 1944, were a loan by the Hindu undivided family to Nandlal.
1,50,000 sent to Nandlal by the Hindu undivided family was utilised as capital in the cloth business of the partnership known as Amulakh Amichand Co. Subsequently, Girdharlal, another brother of Nandlal, came to Bombay and joined the firm.
The reference was made in the following circumstances The Hindu undivided family of one Gandalal carried on business in cloth in Wadhwan in Kathiawar, which at the relevant time was outside British India.
The facts briefly stated are as follows There was in Wadhwan State in Kathiawar a Hindu undivided family companysisting of Gandalal and his four sons, Girdharlal, Hangraj, Nandlal and Ramniklal.
50,000 on June 8 and 29 in the same year.
This family was doing business in cloth.
The family companysisted of Gandalal and his four sons, 1 Girdharlal, 2 Hansraj, 3 Nandlal and 4 Ramniklal.
1,50,000 to the income from the firm of Amulakh Amichand Co., Bombay.
J. Kolah, S. N. Andley, J. B. Dadachanji, Rameshwar Nath and P. L. Vohra, for the respondent.
Then, there as an, appeal to the Income tax Appellate Tribunal, Bombay.
All the capital of the new firm was supplied by Nand lal, and for this purpose he received two remittances of Rs.
788 of 1957.
Two other sums aggregating to Rs.
It was stated that the family of Amulakh Amichand which was a well known business family of Bombay, did number supply any capital to the partnership and Nandlal alone was the financing partner.
Subsequently, Girdharlal also went to Bombay and joined Amulakh Amichand Co. and he was given five annas share out of Nandlals share of ten annas.
K. Daphtary, Solicitor General of India, R. Ganapathy Iyer and D. Gupta, for the appellant.
CIVIL APPELLATE, JURISDICTION Civil Appeal No.
In 1946 Amulakh Amichand Co. started another firm at Banaras under the same name.
In 1944 Nandlal came to Bombay and started a cloth business in partnership with other persons, the partnership being known as Amulakh Amichand Co. Nandlals share in the partnership was ten annas and that of his three partners, who belonged to the family of Amulakh Amichand, six annas.
In 1944 Nandlal went to Bombay and started on April 25, 1944, a cloth business in partnership with three strangers, known as Amulakh Amichand Co. Nandlals sare was ten annas, and that of his three partners, six annas.
50,000 from the Hindu undivided family of which he was a member, and a further sum of Rs.
For the assessment year 1945 46 the Income tax Officer treated the Hindu undivided family as resident in British India under s. 4A b of the Indian Incometax Act, and assessed the family after adding the sum of Rs.
Thus, a total sum of Rs.
On April 13, 1944, Nandlal received a sum of Rs.
April 21.
The case of the assessee was that a sum of Rs.
50,000 on April 27, 1944.
The Judgment of S. K. Das and Kapur, JJ.,
38/x of 1954.
He did number bring any capital, and presumably received a share along with his other two brothers.
50,000 each on April 13 and 27 in the year 1944 and two other remittances aggregating to Rs.
50,000 were also received from the Hindu undivided family on June 8, 1944, and June 29, 1944.
The case of the Department, however, was that the total sum of Rs.
Therefore, the case of the assessee was that Nandlal became the partner of the firm of Amulakh Amichand in his individual capacity.
The partnership firm of Ainulakh Amichand Co. then started a cloth business at Banaras, and the partners of the firm at Banaras were the partners of the Bombay firm of Amulakh Amichand Co. and an outsider from Banaras.
Out of the share of ten annas of Nandlal, Girdharlal was given a share of five annas.
