TMI Blog1931 (2) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... nery, plant and buildings owned or leased by the constituent firms? 2. The Income Tax Commissioner has invited us to answer the first question in the affirmative and the second in the negative, and, after a consideration of the case, I am of opinion that our answers should be as suggested by him. The assessee, the Sri Gopalji Company, was not represented before us but Mr. Jagan Nath Aggarwal who appeared for the Income Tax Commissioner placed all the circumstances and relevant provisions of the law before us. 3. The following are the facts of the case: 4. The Sri Gopalji Company carries on the business of purchase and sale of cotton in this province and thirteen firms constitute its partners. The shares of these firms in the Compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not to exist and is not therefore capable of being assessed to Income Tax. 5. Section 3, Income Tax Act, however makes the Income Tax leviable in respect of all income, profits and gains of every individual Hindu undivided family, company, firm and other association of individuals. The expression company has been defined in Section 2(6) of the Act to mean: a company as defined in the Companies Act, 1913, or formed in pursuance of an Act of Parliament or of Royal Charter or Letters Patent or of an Act of the legislature of a British possession and to include: any foreign association carrying on business in British India whether incorporated or not. 6. The Sri Gopalji Company therefore is not a company as defined in the Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pay Income Tax on its profits. 8. With regard to the second question, it is claimed by the assessee that it is entitled to an allowance on account of depreciation of the machinery, plant and buildings owned or taken on lease by the constituent firms, but it has been pointed out by the learned Commissioner that such constituent firms have been separately assessed to Income Tax in respect of their income and in such assessment allowance has been granted to them for the depreciation of the machinery, plant and buildings. The Sri Gopalji Company is not directly assessed to Income Tax on the income of these constituent firms. Under Section 10, Income Tax Act, an allowance has to be given to the assessee on account of depreciation of building ..... X X X X Extracts X X X X X X X X Extracts X X X X
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