M/S. JAGDISH NARAIN JHABARMAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The Income Tax Appellate Tribunal, Patna, has referred to this Court under Sec. 66(2) of the Indian Income Tax Act, 1922 (Act XI of 1922 - -hereinafter called the Act) the following question of law: - -

(2.) There was a claim of partition under Sec. 25A of the Act which was accepted by the Income Tax Officer, Jamshedpur, by his order dated the 20th of January, 1956, who held that the Hindu undivided family continued as joint till the 31st July, 1952, after which there was a complete partition. A copy of the order dated the 20th January, 1956, is Annexure B to the statement of the case. The partition had been finally effected through Punches and a copy of their award dated the 17th January, 1953, is Annexure C.

(3.) An application for registration of the firm Jagdish Narain Jhabarmal as constituted under the deed of partnership dated the 19th October, 1952, which was the starting date of the accounting year in relation to the assessment year in question, i.e., 1954 -55, was filed by the assessee on the 15th of July, 1955. The Income Tax officer refused to allow the registration under Sec. 26A of the Act by his order dated the 28th February, 1958 (Annexure D) on the following grounds: