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1996 (7) TMI 163 - SUPREME COURT
Whether the income of Murlidhar Himatsingka for his share in the firm of Messrs. Basantal Ghanshyamdas for the assessment years 1952-53 and 1953-54 was rightly excluded from the income of the applicant firm "?
Whether the income of Murlidhar Himatsingka for his share in the firm of Messrs. Basantlal Ghanshyamdas for the assessment year 1955-56 was rightly included in his personal assessment for that year?
Held that:- The High Court was in error in holding that there was no question of an overriding obligation in this case and that the income remained the income of Murlidhar Himatsingka in spite of the sub-partnership created by him under the agreement dated December 21, 1949. In conclusion we hold that there is nothing in section 23(5)(a) that prevents the income from the firm, Basantlal Ghanshyamdas, being treated as the income of M/s. Fatehchand Murlidhar and section 23(5)(a) being applied again.
In the result we accept the appeals, set aside the judgment of the High Court and answer the questions in the negative.