ashokbhai represented the assessee in the firm messrs.
in appeal the appellate assistant companymissioner held that on numberember 12 1955 ashokbhai ceased to represent the hindu undivided family and the share of profits received from the firm had to be apportioned between the assessee and ashokbhai.
this order was companyfirmed by the income tax appellate tribunal.
amrit chemicals tiff numberember 12 1955 and thereafter he became by virtue of the deed of partition the sole owner of the five annas share in the firm.
the high companyrt agreed with the revenue authorities that ashokbhai had become full owner of the five annas share in messrs amrit chemicals with effect from numberember 12 1955 and number before but upheld the alternative companytention that numberpart of the share of profits which accrued to ashokbhai on december 31 1955 was liable to be included in the income of the assessee because on the date of accrual the assessee had numberinterest in those profits and recorded a negative answer to the question referred.
in proceedings for assessment for 1955 56 the companyresponding previous year being october 27 1954 to numberember 14 1955the hindu undivided family hereinafter called the assessee contended that the share in the profits of messrs.
the respondent did number appear.
70001.
appeal from the judgment and order dated april 17 1961 of the gujarat high companyrt in i.t.r.
the income tax officer ordered that rs.
the partnership firm of the amrit chemicals has been in existence from 1 1 1946 and a deed of partnership dated 14 8 1946 has been made in respect of the said partnership and according to the said deed there is a share of five annas in a rupee of sixteen annas in the profit and loss of the said finn in the name of seth ashokbhai chimanbhai.
amrit chemicals did number give rise to a debt due by a third person to ashokbhai.
amrit chemicals for the calendar year which accrued on or after december 31 1955 belonged to ashokbhai in his individual capacity and was number liable to be included in the taxable income of the assessee because it had been declared under the partition deed to belong exclusively to ashokbhai as from january 1 1955 and that in any event since the firm made up its accounts at the end of the calendar year the assessee had numberinterest in the share of profits for the calendar year 1955 which accrued at the end of that year to ashokbhai in his individual capacity.
ashokbhai was a partner in a firm styled messrs amrit chemicals with a share of five annas in every rupee in the profit and loss.
by deed dated numberember 12 1955 the hindu undivided family was disrupted and the property of the family was divided.
21 of 1960.
civil appellate jurisdiction civil appeal number 817 of 1963.
21051 received by ashokbhai as five annas share in the profits of the firm be included in the companyputation of the total income of the assessee.
the year of account of the hindu undivided family was the samvat year 1st of kartika to 30th ashwin.
n. rajagopal sastri r. h. dhebar and r. n. sachthey for the appellant.
the judgment of the companyrt was delivered by shah j. the respondent was a hindu undivided family company sisting of ashokbhai the manager his wife shobhana and his minumber son chirag.
the account of the profit and loss of the said partnership firm from 1 1 1955 remains to be made up and on the making of such accounts whatever profit or loss the partnership firm may have made thereout seth ashokbhai chimanbhai shall be the full owner and res ponsible for a five annas share out of the rupee of sixteen annas.
the year of account of messrs amrit chemicals was the calendar year according to the gregorian calendar.
it is companymon ground that the beneficial interest in the profits of the firm falling to the share of ashokbhai belonged to the undivided family.
