9911796707
TMI Blog1980 (6) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... f the HUF capital in the firm was passed by the ITO on 25th March, 1971 under the provision of the memorandum, the assessee's wife and minor son were to share the income from the 50 per cent share of the firm in equal shares and an over-riding charge in favour of the wife and the minor son to the extent of their respective shares of profit was credited on the entire income. 2. In the asst. yr. 1974-75, the assessee claimed 50 per cent share of profit from the firm amounting to Rs. 34,70,212 cannot be included in the income and only 1/3rd share belonging to the assessee in the status of Individual should be computed as taxable income. In view of the over-riding charge thus created under partial partition. ITO held that the memorandum dt. 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal on the applicability of s. 64 existence of sub-partnership, levy of interest additions and disallowances etc. And such other grounds of appeal are referred by the assessee, the action of the CIT (A) in not making any reference to the several grounds of objections is prejudicial. He, therefore, urged that the order of the CIT(A) be set aside and the case decided on merits as per grounds of appeal referred before the Commissioner of Income-tax. 5. The assessee's representative placed before us the copies of the orders of the Tribunal in the assessee's own case for the asst. yrs. 1969-70,1970-71, 1971-72 and 1972-73 and also the copies of the assessment orders for the asst. yrs. 1973-74, 1975-76, and 1976-77 pointing out that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of 2/3rd share would be assessable in the hands of the assessee's wife and minor son. The same view has been taken in the case of Shri A.N. Agrawal for the asst. yr. 1974-75 by the Delhi Bench 'A' in ITA No. 1301 (Del)/79 dt. 17th Nov., 1979. The order of the Commr. has been cancelled and the ITO is directed to include in the income of the assessee only 1/3rd share out of the share income in the name of the assessee in the firm. Respectfully following these orders of the Tribunal with which we agree we hold that the order of the CIT (A) is wrong. 7. We accordingly cancel the order and direct the ITO that only 1/3rd share of the profits out of 50 per cent share income in the firm shall be included in the total income of the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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