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2010 (2) TMI 413 - HC - Income TaxIncome - Mutual Association - The assessee was a firm carrying on business as property developers, traders in general merchandise and as commission agents. The Firm pooled the resources of all the partners and carried on its business. The Assessing Officer scrutinized the assessment and disallowed the claim of exemption of payment of income under section 4 of the Act rejecting the plea of mutuality of receipt. This was upheld by the Commissioner (Appeals) and the Tribunal. Held that - a perusal of partnership deed and the supplementary partnership deed made it clear that the business activities of the assessee firm were not restricted to the partner only. The assessee was engaged in the business of property development, commission agency and other allied activities which implied dealing with third parties. The assessee was not a mutual association. Its income was taxable.
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