TMI Blog1993 (7) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... on for our consideration: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the income from the partnership share in the firm of Messrs. Hemant Brothers was includible in the total income of the assessee in his individual capacity and not in the total income of the Hindu undivided family ?" The relevant and pertinent facts which are requ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rupee in the firm of Messrs. Hemant Brothers in his individual capacity, closed the same and introduced in his place as partner of the firm, himself in the capacity of karta of the Hindu undivided family. This was done by withdrawing the amount of Rs. 43,645 standing to his credit (by a debit entry passed in the account books of the firm). By an almost identical entry passed in the books of accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch cash transactions, the said concepts would not have entered into the picture at all. It may also be noted here that the amount of Rs. 43,645 withdrawn by Hemantkumar Chimanlal (as an individual) from the firm by the debit entry represented his capital, share in the firm, interest due and other sundry amounts On the other hand, the identical amount credited in the books of account in the name ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hindu undivided family had become a partner in the firm of Messrs. Hemant Brothers with effect from October 31, 1970. In other words, the agreement dated April 1, 1971, and the action of the Hindu undivided family in bringing in further assets to the firm by way of additional capital only add further corroboration to the intention of the parties to replace the individual, as a partner, by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivided family and not in his individual capacity. In this view of the matter, the share in the taxable profit of the firm in respect of Samvat year 2027 (the accounting period beginning October 31, 1970) cannot be treated as the income of Hemantkumar Chimanlal as an individual. The question presented to us is, therefore, answered in the negative and against the Revenue. The reference stands disp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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