TMI Blog1968 (8) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... ecember 21, 1964, in Writ Petition No. 1294 of 1961. The appellant had entered into a partnership with three others named D. Sayappa, H. Siddappa and M. Veeraiah to carry out a " Gulmoha " contract for the year 1949-50. The firm was known as Messrs. Kalva Suryanarayana. 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 share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh Court by its judgment dated December 21, 1964. The provisions of section 23(5) and section 44 of the Act as they stood at the material time are reproduced below : " 23. (5) Notwithstanding anything contained in the foregoing sub-sections, when the assessee is a firm 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. L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mputed is brought to tax. If the partnership is unregistered, the tax payable by the partnership is, except when the Income-tax Officer otherwise directs in the interests of revenue, determined as in the case of any other entity, and the demand for tax is made on the partnership 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 inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssociation of persons. On discontinuance of the business of a firm or dissolution of the association of persons, it is declared that every person who was, at the time of such discontinuance or dissolution, a partner of such firm or a member of such association shall, in respect 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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