Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2008 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2008 (7) TMI 517 - HC - Income TaxAssessment under section 142,143 – doctrine of mutuality – The assessee firms was created to carrying on the business of money lending and trading of fabrics and garments. It filed its return of income claiming benefit of the doctrine of mutuality on the ground that it had only advanced loans to the partners. The assessing officer rejected the claim of the assessee and the commissioner (Appeals). Held that- appeal is dismissed, as the firm was created not only for the benefit of its partners for lending money to them but it was created to do other business like money lending to all third parties and to do garment business. When the object of the firm was to carry on business and incidentally in any one of the assessment year if the firm had advanced loan to its partners without carrying on any business, it could not be said to be contrary to the aim and object of the firm. All the authorities below had rightly refused to apply the principles of mutuality as claimed by the assessee.
|