Decided on January 30,1982



Prakash Narain, Accountant Member - (1.) SINCE the above appeals relate to the same assessee and also involve more or less common contentions, they are disposed of by this consolidated order for the sake of convenience.
(2.) Munna Lal Moti Lal was an HUF of which Shri Moti Lal was the karta. This entity was duly assessed to income-tax up to the assessment year 1967-68 vide GIR No. 711-M. There is no dispute about this fact, which is also proved from a copy of the notice issued under Section 143(2) of the Income-tax Act, 1961 ('the Act') on 28-11-1967, and a photostat copy of the same appears at page 35 of the paper book submitted by the assessee. Shri Moti Lal died sometime in April 1967. According to the assessee, the business originally carried on by Munna Lal Moti Lal, which was in sarrafa, was later on carried on in the name of Moti Lal Shri Nath. However, there was no change in the status which continued to be the HUF, though its karta now was Shri Nath. . This business was continued up to 31-7-1969 According to the assessee, on 31-7-1969, there was a partition of the family when the capital of Rs. 14,716.66 was divided between three brothers, namely, Shri Nath, Suresh Chand and Ram Naresh, who were also its coparceners. The case of the assessee is that the partition is evidenced by the entries in the books of account, although decision to partition was taken orally. As per the version of the assessee, after the partition of the family, with effect from 31-7-1969, Shri Ram Naresh left. Shri Nath and Suresh Chand started the business in partnership, in the name of Shri Nath Suresh Chand. Again, as per the assessee, this firm was dissolved on 31-3-1972. After its dissolution Shri Suresh Chand started his separate business of sarrafa, with effect from 1-4-1972, in the name and style of Suresh Chand Manish Kumar. Besides, Shri Nath also started his separate business in the name of 'Shri Nath'. This too was in sarrafa.
(3.) A search was conducted at the premises of the assessee on 18-11-1976, by the income-tax department. In this search, books of Moti Lal Shri Nath, Shri Nath Suresh Chand and Suresh Chand Manish Kumar were seized.;

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