INDERJIT SINGH SIAL Vs. COMMISSIONER OF INCOME TAX M P NAGPUR

JUDGEMENT

(1.)

(2.) The assessee Inderjit Singh is the son of Shri P. S. Sial. The assessment year is 1944-45. The assessee submitted a return for the year ending on 31st March, 1944, in which he declared his income to be Rs. 22,185-8-0. According to him, the amount of Rs. 21,100 represented his share of profits made by the partnership entitled the Chhindwara Military Hutting Contract of which he and his father were partners. The details of the income were shown as follows :- Coal business Rs. 1,085 Half share in Chhindwara contract partnership Rs. 21,100 Rs. 22,185 The Income-tax Officer filed the case as the total income was below the taxable limit. The reason for excluding the amount of Rs. 21,100 was that he had in the previous assessment year held that there was no partnership between the father and the son and that the business belonged to P. S. Sial alone. The entire profits were included in the income of P. S. Sial and assessed accordingly. P. S. Sial appealed to the Appellate Assistant Commissioner, but he was unsuccessful. The Appellate Tribunal, however, accepted his contention and held that there was a partnership between the father and the son and that P. S. Sial was liable to pay tax only on his share of profits. The material part of the order passed on 3rd May, 1949, is as follows :- "We would, therefore, direct that only the assessees share from this partnership be included in his assessment. The sons share should be assessed in the hands of the son."

(3.) THE contention of the learned counsel for the assessee is that the order passed by the Income-tax Officer on 28th March, 1950, was not in accordance with the provisions of the Act.