RANGANATHAN, J. - (1.) THESE two references at the instance of the CIT can be disposed of by a common judgment, as the facts as well as the question of law are identical.
(2.) THE two assessees are partners in a firm known as M/s Prayag Dass Kanhaiya Lal and Co. The firm carries on a business in the manufacture of a paper known as "Delhi Pulp Industries" which, it is common ground, is an industrial undertaking within the meaning of S. 84 of the INCOME TAX ACT, 1961, as it stood at the relevant time. The firm had been granted relief under S. 84 in respect of the profits derived from the industrial undertaking. Each of the assessees claimed in their individual assessments for the years 1962 -63 and 1963 - 64 that their share of income derived from the firm was also eligible for exemption under S. 84 of the IT Act and this contention has been accepted by the Tribunal. Thereupon, the following question of law in each of the cases has been referred to us for our decision : "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the assessee is entitled to relief under S. 84 of the INCOME TAX ACT, 1961, when it has already been allowed to the firm in which the assessee is a partner ?"
(3.) THE above question has been the subject -matter of judicial decisions. The Gujarat High Court in CIT vs. Arun Industries (1966) 61 ITR 241 (Guj) and the Allahabad High Court in CIT vs. Globe Engineers (P.) Ltd. (1973) 90 ITR 188 (All) and in CIT vs. Bharat Bhanday (1974) 94 ITR 315 (All) have held that such rebaate is available to each of the partners in addition to the rebate granted in the case of the firm. It is seen from the commentary of Chaturvedi and Pithisaria on Income -tax Law, 2nd edn., Vol. 2, p. 1077, that the Department has also accepted the view of the above High Courts. It may also be mentioned that the scheme of ss. 84 and 88 of the IT Act has been subsequently modified and now S. 80A(3) has been introduced specifically prohibiting a double deduction as in the present case.;