UMACHARAN SHAW AND BROS Vs. COMMISSIONER OF INCOME TAX WEST BENGAL

JUDGEMENT

(1.) These are two appeals with the special leave of this court, against an order dated June 1, 1956, of the High court of Judicature at Calcutta in Income-tax Reference No. 10 of 1956 and an order of the Income-tax Appellate tribunal, Calcutta bench, dated 22.03.1955, in I.T.A. No. 5037 of 1954-55 (assessment year 1948-49)The Income-tax Appellate tribunal by its order dismissed an appeal filed by the appellant firm to impugn an order of the Appellate Assistant Commissioner of Income-tax confirming an order declining to register the appellant firm under section 26A of the Indian Income-tax Act, hereinafter referred to as the Act. The order of the High court was passed rejecting summarily an application by the appellant firm under section 66(2) of the Act. The present Judgement shall dispose of both the appeals.

(2.) The facts of the case are as follows:

(3.) In 1938. it is alleged, the family disrupted, and on 7.04.1939, Uma Charan and his two brothers entered into a deed of partnership which was also registered with the Registrar of Firms, Bengal. By this deed the three brothers agreed to carry on the joint family business in partnership, and they opened a separate book of account which they called Bati Khata which purported to show the capital contributions and accounts of the partners and also division of profits amongst them according to their shares. The appellant firm alleges also that even before the emergence of the partnership the brothers had begun to live in separate houses and had separated in mess, food and worship. The deed of partnership also provided that the income of the immovable property was to be collected jointly and divided equally between the three brothers. During the earlier years the joint family was assessed as a Hindu undivided family under the name of Uma Charan Shaw and Brothers, with Uma Charan Shaw as the karta in respect of the business and the immovable property.