TMI Blog1994 (6) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... t was included in the income of the partners. (2) The learned CIT(A) was not justified in rejecting the various Tribunal rulings involving the same point as in the instant case. (3) The interest on the F.Ds. standing jointly in the name of the partners may not be treated as income of the appellant firm." 3. Certain fixed deposits were purchased with the cash of the firm in the name of the two partners of the firm. These partners were holding equal shares in the profits of the firm and also had equal interest in the fixed deposit and also shared interest equally. The fixed deposits appeared as an asset in the balance sheet of the firm. There were no drawings or debit entries in the partners' personal accounts for making the fixed depos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned CIT(A) has upheld the finding of the Assessing Officer. He has observed that the firm held property in the name of its partners and there were no debits in the capital accounts of the partners and, therefore, it could not be said that the money was withdrawn by the partners and the deposits were made by them. The deposit was out of the cash balance in the books of the firm and, therefore, the deposits remained the asset of the firm. In support of his view, the learned CIT(A) has also relied upon the decision of the Supreme Court in Addanki Narayanappa v. Bhaskara Krishnappa AIR 1966 SC 1300. 5. It was submitted before us by the learned counsel for the assessee that from the very beginning and all along the assessee had intention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the firm. These deposits were shown as an asset in the balance sheet of the firm for the three years. In the case of the partner Shri D.K. Kulkarni, there were no sufficient opening balance at the commencement of the assessment year 1984-85 so as to enable him to withdraw half of the total amount of the deposits. Moreover, a copy of the certificate filed by the assessee at page 2 of the paper book shows that the Bank of Baroda credited the interest on the deposit of Rs. 1,00,000 to the current account of M/s Ramson Brothers, i.e., the appellant firm. This shows that instructions to the Bank were to credit the interest income to the account of the firm and not to the account of the individual partners. Thus the intention all along had been t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g balance in the personal account of the partner Shri D.K. Kulkarni so as to enable him to withdraw 50% of the amount of investments; (iv) the certificate dated 7-6-1984 issued by the Bank of Baroda which has been produced by the assessee itself shows that interest amount of Rs. 10,000 was credited to the current account of M/s Ramson Brothers, i.e., the appellant-firm and not to the individual account of the partners; (v) in the other bank certificates appearing at pages 3, 4, 5, 6, 7 8, the relevant column has been deliberately left blank and it has not been stated as to in whose account the interest income was credited from year to year. By keeping the relevant column blank, an attempt has been made to withhold complete information ..... X X X X Extracts X X X X X X X X Extracts X X X X
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