COMMISSIONER OF INCOME TAX Vs. MANDAL N C AND COMPANY

JUDGEMENT

(1.) THESE two references under Section 66(1) of the Indian Income-tax Act, 1922, have been heard together and this judgment will govern both the cases. The question of law which has been referred to this court, covering both the cases, is as follows :

(2.) THE relevant facts are as follows: THE assessee firm was constituted under a deed of partnership dated the 4th December, 1958, and comprised of four partners, who had shares in the profits and losses of the business in equal proportion. THE capital was fixed at Rs. 26,000, to be contributed equally by the partners. THE preamble of the partnership deed provided as follows: (THE first party mentioned in the preamble referred to Sri Nakul Chandra Mandal).

(3.) I may now give the salient facts of Tax Case No. 50 of 1966, before referring to the final order of the Income-tax Appellate Tribunal, as that order covers both the cases. Tax Case No. 50 of 1966 refers to an application for legistration of the same firm for the assessment year 1960-61. It appears that a fresh partnership deed was executed on the 15th June, 1959, amongst the four partners, the first party being the same Sri Nakul Chandra Mandal. Apart from the date and the details as to the amounts contributed by the four partners, the principal clauses were the same as in the earlier deed, the name and style of the partnership being Messrs. N. C. Mandal & Company. Clause 10 of this deed stated thus :