TMI Blog1998 (7) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... l and the Revenue has come before us in seeking to answer the following question : "As to whether the Tribunal was right in holding that the urban property used by the firm, Soundarya Nursery, in which sons of the coparceners of the assessee-Hindu undivided family are partners, is the property used by the assessee for its business and would be outside the purview of additional wealth-tax especially when the share income from the firm does not belong to the Hindu undivided family but to the individual members of the Hindu undivided family ?" Additional wealth-tax is payable on urban assets and the owner is relieved from the obligation for payment of such additional tax, if it is used for the purpose of "his business or profession". It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ya Nursery on the land owned by the Hindu undivided family, the business so carried on by the firm cannot be regarded as business carried on by the Hindu undivided family. Learned counsel for the assessee, however, contended that the partners in fact, carrying on business on the land owned by the Hindu undivided family were liable to account for the income derived from such user and, therefore, the business carried on by the firm should be regarded as business carried on by the Hindu undivided family. Counsel relied on the decision of the Supreme Court in the case of G. Narayana Raju (Decd.) v. G. Chamaraju, AIR 1968 SC 1276 at page 1278, wherein the Supreme Court has held as under : "It is well established that there is no presumption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngs of the joint family. Be that as it may, the coparceners had chosen to form a partnership which for the purpose of the Income-tax Act is treated as an assessable entity. As already noticed Hindu undivided family cannot be a member of a firm and whatever be the obligation of the partners to others including the Hindu undivided family to which they belong, that is not a matter of any consequence for the purpose of determining the rights and obligations of the firm and its partners for the purpose of the taxing statutes. The exemption granted by the statute here is limited to the assessee which carries on a business or profession on the urban asset owned by it. The business must be a business "carried on" by the assessee and not by any on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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