BHAVNANI BUS SERVICE CO Vs. COMMISSIONER OF INCOME TAX BOMBAY CITY

JUDGEMENT

(1.) BY its order dated the 8th of March, 1963, the Income-tax Appellate Tribunal has referred the following question to the High Court under section 66 (1) of the Income-tax Act, 1922 :

(2.) THE assessee, Messrs. Bhavnani Bus Service Company, is a registered partnership firm doing the business of transporting passengers on certain routes. The firm was formed under a deed of partnership dated the 8th of October, 1949, for a period of three years commencing from the 17th day of June, 1949. It was to continue thereafter at the will of the parties. The firm consisted of four partners, Tuljaram Issardas Bhavnani, Hiranand Issardas Bhavnani, Bhagwan H. Mansukhani and Mrs. Lili Mansukhani having a share of 6 annas, 4 annas, 4 annas and 2 annas, respectively.

(3.) ON the 29th of July, 1952, a fresh deed of partnership was executed between Tuljaram Issardas Bhavnani, Hiranand Issardas Bhavnani, Sunder Singh and Mrs. Ramibai having a share of 6 annas, 4 annas, 4 annas and 2 annas, respectively. Bhagwan H. Mansukhani and Mrs. Lili Mansukhani, who were partners sunder the first deed of partnership, went out of the partnership and their places were taken by Sunder Singh and Ramibai. Clause 2 of the preamble of this deed recites that the partnership of the 8th of October, 1949, had comet an end "by a flux of time" obviously meaning "by efflux of time".