9911796707
TMI Blog1968 (8) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... After completion of the contract the partnership came to an end. For the assessment year 1951-52, the partners of the dissolved firm made an application for registration of the partnership to the respondent who granted the registration on February 28, 1953, and on that basis proceeded to assess the total income of the partnership which he determined as Rs. 1,64,546 (O.S.), and the total income was apportioned among the four partners in proportion of their respective shares. Subsequently, the Commissioner of Income-fax, in exercise of his revisional power under section 33B of the Income-tax Act, passed an order on February 26, 1955, holding that the partnership had suppressed income to the extent of Rs. 1,72,149 (I.G.) by inflating the expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the total income of the firm has been assessed under sub-section (1), sub-section (3) or sub-section (4), as the case may be, (a) in the case of a registered firm, the sum payable by the firm itself shall not be determined but the total income of each partner of the firm, including therein his share of its income, profits and gains of the previous year, shall be assessed and the sum payable by him on the basis of such assessment shall be determined. . . " " 44. Liability in case of a discontinued firm or association.---Where any business, profession or vocation carried on by a firm or association of persons has been discontinued, or where an association of persons is dissolved, every person who was at the time of such discontinuance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ip itself. The result is that, if the partnership is registered, tax is collected from the partners individually and there is no levy of tax against the partnership. If the partnership is unregistered, the, tax may, unless otherwise directed, be levied against the partnership. In either case, the machinery set up by section 23(5) is for assessment of tax payable on the income of the partnership. The income of the partnership is computed, but tax is assessed on that income on the partners or the partnership, according as the income is of a partnership, registered or unregistered. In Income-tax Officer, Agra v. Radha Krishan it was argued that in the case of assessment made under section 23(5)(a) of the Act the tax liability was joint and sev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the income, profits and gains of the partnership or association, be jointly and severally liable to assessment and for the amount of tax payable. There is, however, nothing in the section which supports the argument of the respondent that for the payment of tax assessed against the partners of a registered partnership individually under section 23(5) (a) of the Act, another partner becomes liable jointly and severally with that first partner to pay tax. The entire scheme of taxing the income of a registered partnership in the hands of individual partners is inconsistent with any argument that for payment of tax assessed against a partner, other partners are liable. It should be noticed that the tax assessed against a partner of a regis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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