COMMISSIONER OF INCOME TAX Vs. COSSIPORE PROPERTIES
HIGH COURT OF CALCUTTA
COMMISSIONER OF INCOME-TAX
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Dipak Kumar Sen, J. -
(1.)This is a reference under Section 66(1) of the Indian Income-tax Act, 1922, which has been initiated by the Commissioner of Income-tax, West Bengal-III, Calcutta. The facts found and/or admitted as appearing in the statement of the case and the annexures thereto may be shortly noted as follows :
(2.)The assesses is one Messrs. Cossipore Properties Ltd., Calcutta. Two individuals, namely, Budhmal Jain and Nirmal Kumar Jain, had entered into a partnership under a deed dated the 17th April, 1959, and constituted the assessee. It has been recited in the deed of partnership and it has also been found as a fact that prior to the constitution of the partnership, Budhmal Jain had been carrying on business under the name and style of Cossipore Properties and was trading by way of taking lease of godowns and letting out the same to various persons on rent. After the partition of India in 1947, the trade in raw jute in India had suffered a set back and a number of concerns which had been carrying on business of storing, packing, pressing and exporting raw jute had to be closed down. Consequently, a number of godowns belonging to the said concerns fell into disuse. Budhmal earned profits by taking lease of such godowns and sub-letting the same to various parties for storage of goods and commodities.
(3.)It is recited in the deed that Budhmal had to remain out of Calcutta for long periods due to his indifferent health. Being desirous of extending his business by opening new lines, namely, dealings in jute, hessian, textiles and other similar commodities and with this object Budhmal constituted the partnership with Nirmal Kumar and the partnership took over the earlier activities of Budhmal, namely, letting out of the leased godowns.
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