1994 (1) TMI 76 - HC - Income Tax

Summary

The High Court of Madras ruled that two firms with the same partners and different profit-sharing ratios must be treated as one partnership for assessment purposes. The court found that funds from the cloth business were used to construct a theatre, leading to a conclusion that the firms were not independent. The decision was based on the Supreme Court's guidelines on partnerships. The question was answered against the assessee with costs of Rs. 500.