SUNDAR SINGH MAJITHIA SIR Vs. STATE OF U P

JUDGEMENT

(1.) THIS is a statement of a case by the Commissioner of Income Tax, C.P. and U.P., under Section 66(2) of the Indian Income-tax Act. The reference was made at the instance of Sardar Bahadur Dr. Sir Sundar Singh Majithia, C.I.E. who is the head of an undivided Hindu family consisting of himself and his three sons.

(2.) THEREAFTER an application for review was preferred to the Commissioner under Section 33 and also an application under Section 66(2) requiring the Commissioner to refer certain questions for the decision of this Court. The Commissioner rejected the application for review, but has stated a case for our decision. The question referred to us is as follows :-

(3.) AS we have already said the firm is styled The Saraiya Sugar Factory. Having regard to the ordinary meaning of factory it seems to us improbable that the ownership rights of the partners of this firm would be confined to the business and machinery and would not include building in which the business is conducted and the machinery is contained. The assessment order of the 18th April 1933 relating to the Saraiya Sugar Factory shows that depreciation was claimed; and an allowance was made by the Income-tax Officer on this account not only in respect to buildings. The amounts so allowed in respect to buildings was Rs. 5,058 - vide page 23 of our record. No objection was apparently made that the buildings did not form part of the property of the firm, but belonged exclusively to Sir Sundar Singh, and presumably, therefore, depreciation had been actually claimed on this account as well as under other heads.