DEPUTY COMMISSIONER OF COMMERCIAL TAXES GUNTUR DIVISION GUNTUR Vs. K BAKTHAVATSALAM NAIDU
LAWS(APH)-1955-7-22
HIGH COURT OF ANDHRA PRADESH
Decided on July 25,1955

DEPUTY COMMISSIONER OF COMMERCIAL TAXES, GUNTUR DIVISION, GUNTUR Appellant
VERSUS
K. BAKTHAVATSALAM NAIDU. Respondents


Referred Judgements :-

GANNAN DUNKERLEY AND CO MADRAS LTD VS. STATE OF MADRAS [REFERRED TO]



Cited Judgements :-

BHAILAL BHAI VS. STATE OF M P [LAWS(MPH)-1959-12-7] [REFERRED TO]
SUDARSAN VS. STATE [LAWS(MAD)-1980-12-15] [REFERRED TO]
LALJI VS. ASSISTANT COMMISSIONER SALES TAX [LAWS(MPH)-1958-7-16] [REFERRED TO]
ROOPCHAND RAGHAVJI PHANDE VS. ABHYANKAR [LAWS(BOM)-1969-12-3] [REFERRED TO]
KHUSHI RAM BEHARI LAL AND CO VS. ASSESSING AUTHORITY [LAWS(P&H)-1963-12-1] [REFFERED TO]
STATE VS. MANGTU RAM [LAWS(RAJ)-1961-10-4] [REFERRED TO]


JUDGEMENT

SATYANARAYANA RAJU, J. - (1.)THIS is a revision petition filed by the State of Andhra against the decision of the Sales Tax Appellate Tribunal in T.A. No. 56-A of 1953.
(2.)THE respondent is the son of one K. Janakiram Naidu, who was a railway contractor doing business under the name and style of K. Janakiram Naidu and Sons at Kodur. The father having died, the five sons of the said Janakiram Naidu, of whom the 3rd is the respondent herein, executed a deed of partnership on the 7th of July, 1943, in and by which they had mutually agreed to become partners subject to terms contained in the deed. The deed provides inter alia that the partnership shall be in force for a period of five years from 20th May, 1943, and on the expiry of the period, for such further time as the partners may mutually agree. The partnership was dissolved on the 17th of December, 1951, by a memorandum of agreement entered into at Madras between the respondent and his brothers.
It recites that the brothers have been carrying on partnership business under the name and style of Messrs K. Janakiram Naidu and Sons, that disputes have arisen between them regarding the sharing of the assets and liabilities of the abovesaid partnership and that they agree that as from that date they should become divided in status from each other and that the partnership shall also stand dissolved as from that date. It was further agreed that certain sums payable to the aforesaid partnership by the Southern Railway, Madras, in respect of two bills drawn in respect of contract works carried out by Kothandaram Naidu and Bhaktavatsalam Naidu (respondent) on behalf of the partnership should be drawn by another brother Muthyala Narayana Rao Naidu.

(3.)IN the year of assessment 1949-50, there was a contract with the railway in the same of the partnership of the construction of running rooms at Kondapuram. The Deputy Commercial Tax Officer assessed the respondent on a sum of Rs. 54,745 allowing a deduction of 30 per cent. on his contract work as prescribed. The respondent preferred an appeal to the Commercial Tax Officer contending inter alia that the firm of Janakiram Naidu and Sons also should have been assessed as the business was that of the partnership and not his individual business. The Commercial Tax Officer, however, dismissed his appeal. On a further appeal before the Sales Tax Appellate Tribunal, it was held by the majority of the members that the business was conducted as a partnership business and that therefore the assessment ought to have been properly made only against Messrs. Janakiram Naidu and Sons.
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