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2011 (4) TMI 41 - HC - Income TaxPartnership firm - transactions between firm and partners - As per the case of Lovelock & Lewes v. Commissioner of Income-tax (1993 -TMI - 20088 - CALCUTTA High Court), the Division Bench held that when the firm pays to its partners, it pays to itself and likewise when the firm extends to the partners a benefit, the benefit is availed of by the firm itself - Where the two partners of the firm after withdrawing from capital of the partnership-firm by mutual consent of the two partners decided to purchase and subsequently to sell shares of different companies by giving brokerage to the assessee-firm of which they are the partners - In such circumstances, there is no just reason of treating the income from such share transactions of the partners of the assessee as those of the firm - The firm in those transactions only got the brokerage and those brokerages would be the income of the firm. Held that:the Tribunal erroneously set aside the order of the Commissioner of the Income-tax (Appeals) as regards the income arisen out of the sale of the shares in respect of ITC Ltd. and Tata Tea Ltd. at the instance of the partners by adding the same to the income of the assessee - Therefore, allow this appeal by answering the question in the negative in favour of the assessee
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