TMI Blog1990 (8) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Whether, the finding of the Tribunal that the wife and son of Sri Satyanarain Prasad were really representing the Hindu undivided family and 52 per cent. of the business profits of Messrs. J. S. Distributors was to be added to the income of the assessee is based on any evidence and/ or material and/or partly on irrelevant materials and partly on its failure to consider the relevant materials and/or based on mere conjecture or surmise and perverse ?" The facts relating to this reference are that the assessee is a Hindu undivided family carrying on business with its head office in Calcutta and a branch office at Varanasi. The assessment years are 1963-64 to 1965-66 and the relevant accounting years ended on Diwali 1962 to 1964, respect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istant Commissioner. For the assessment years under reference, the Income-tax Officer included the entire income of Messrs. J. S. Distributors in the total income of the assessee as he was of the view that the firm of Messrs. J. S. Distributors was not a genuine firm and the business done by it was really conducted by the assessee. In appeals before the Appellate Assistant Commissioner, the Appellate Assistant Commissioner deleted the income of the said firm from the total income of the assessee as he had already held in the case of the said firm that it was a genuine firm and the business conducted by it was its own business. Against the said orders of the Appellate Assistant Commissioner, the Revenue preferred appeals before the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esentative stated before us that the Department has no contention against the genuineness of either the partnership deed or the deed of agreement. As observed by this Tribunal in its earlier order, the various suspicious circumstances pointed out by the Income-tax Officer which we find no need to refer to in detail, are not unexplainable with reference to the terms and conditions in the deed of agreement. Even if we may for the present purpose of argument even without going into that question, take it that the four partners who are related to Sri Satyanarayan Prasad, the karta of the Hindu undivided family, are only his nominees and, therefore, the representatives or the benamidars of the Hindu undivided family, the fact remains that the ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me, however, in our opinion, cannot be said about the wife and son of Sri Satyanarayan Prasad. Between them they share to the extent of 52 per cent. Though the wife of Sri Satyanarayan Prasad is shown to have invested Rs. 2,731 as her share of the capital, nothing is produced before us to show that she by herself could have contributed the same. Similar is the case with her son in respect of the amount, if any, shown as his capital investment. It was the licences secured by the Hindu undivided family that were made over to the firm to exploit. The office of the Hindu undivided family was made available to the firm. Though Sri Satyanarayan Prasad himself was not a partner, we find him having taken a very active part in conducting the busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tnership firm in fact represented the Hindu undivided family, did not consider all the facts of the case which are relevant for the purpose of determining this issue. The Department while admitting the genuineness of the firm as well as the agreement in question contended that even on the basis of the agreement the conclusion follows that the wife and son of Sri Satyanarayan Prasad did really represent the Hindu undivided family in the partnership firm. In our view, the Tribunal did not decide the question in the proper perspective. All the documents and evidence relevant for deciding this issue have not been considered. The Tribunal did not consider the effect of the agreement which had been relied upon before the Tribunal in the case aris ..... X X X X Extracts X X X X X X X X Extracts X X X X
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