The Commissioner of Income tax took an appeal to the Appellate Tribunal and the Tribunal held that assessment companyld number be made on Amarchand and that s. 24B had numberapplication to the income received after the death of Amarchand and that it was capital receipt and number revenue receipt.
Against that order an appeal was taken to the Appellate Assistant Commissioner and then to the Appellate Tribunal.
Appeal from the Judgment and order dated October 10, 1958, of the Bombay High Court in Income tax Reference No.
The Income tax Officer sought to tax these realisations.
The assessments for 1951 52 to 1954 55 were therefore quashed.
15 to 19 of 1962.
32,523/ by the heirs and legal representatives of Amarchand out of the outstandings.
Shortly stated the facts of the case are these Amarchand N. Shroff, Mangaldas and Hiralal were partners in a firm of solicitors.
The appeals relate to the assessment years 1950 51, 1951 52, 1952 53, 1953 54 and 1954 55.
V. Viswanatha Sastri, J. B. Dadachanji, O. C. Mathur and Ravinder Narain, for the respondents.
43,162/ , Rs.
37,847/ , As.
22 of 1 958.
the numberice under s. 34 companyld validly be served only for the assessment years 1950 51 and numberices for the subsequent years were invalid.
N. Sanyal,, Additional Solicitor General of India, N. Karkhanis and R. N. Sachthey, for the appellant.
CIVIL APPELLATE, JURISDICTION Civil Appeals Nos.
The assessments so made were for the assessment years 1950 51, 1951 52, 1952 53, 1953 54 and 1954 55 On appeal the Appellate Assistant Commissioner held that.
The question referred was answered in the negative and against the Commissioner of Income tax who is the appellant in these appeals, the respondents being the heirs and legal representatives of one Amarchand N. Shroff deceased.
October, 23.
For the five assessment years 1950 51 to 1954 55 the following amounts were received Rs.
Thereafter the partnership was carried on by Mangaldas and Hiralal up to November 30, 1949, and on December 1, 1949, Ramesh son of Amarchand who had by then qualified as a solicitor joined the firm as the third partner.
The firm kept its accounts on cash basis.
Amarchand died on July 7, 1949.
The judgment of the Court was delivered by KAPUR, J. These a peals pursuant to a certificate of the High Court of Bombay raise the question of interpretation of s. 24B of the Income tax Act in an Income tax Reference.
The various amounts were assessed to income tax in the hands of the respondents under s. 34 1 b read with s. 24B of the Income tax Act.
After the death of Amarchand the arrangement between the various partners in regard to the realisations of the old outstandings was that in respect of the work done up to the death of Amarchand the realisations were to be divided amongst Amarchand, Mangaldas and Hiralal, in respect of the work between July 8, 1949, and November 30, 1919, the realisations were to be divided between Mangaldas and Hiralaland in respect of work done after December 1, 1949, the realisations were to be divided amongst Mangaldas, Hiralal and Ramesh.
For the assessment years 1950 51 and 1951 52 he assessed the amounts in the hands of the heirs and legal representatives of Amarchand as a Hindu undivided family.
