TMI Blog1989 (4) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... 00 and Rs. 2,638 were proper deductions for the assessment years 1970-71, 1971-72 and 1972-73, respectively ?" The assessee is a registered firm dealing in cloth and has been maintaining its accounts on the mercantile basis. There was another firm, M. R. Govindasami Chettiar and Sons, in which one G. Padmanabha Chettiar was a partner, representing the joint family, of which he was the karta. That firm was dissolved on April 13, 1969, and its assets and liabilities were taken over by G. Padmanabha Chettiar who agreed to pay off the other partners as well. Of the amounts so payable was a liability to a partner, Ragothama Chettiar. On April 13, 1969, there was a partition in the family of G. Padmanabha Chettiar which consisted of himself and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest had been charged keeping in view the enhanced income and for the assessment year 1970-71, the amount charged came to Rs. 16,428. In the appeals preferred by the assessee before the Appellate Assistant Commissioner, an objection was raised to the reopening of the assessment and inclusion of the amount of Rs. 16,428 by way of interest for each of the assessment years as well as the disallowance of interest claimed as deduction. The Appellate Assistant Commissioner dismissed all the appeals. On further appeal before the Tribunal, it took the view that when the assessee-firm had taken over the assets and liabilities of the erstwhile firm as part of the capital of the partner or partners, the debtors and the creditors of the erstwhile fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n this connection was placed upon the decision in CIT, v. V. Damodaran [1980] 121 ITR 572 (SC). It is seen that in the reference application filed by the assessee, it sought such a reference only in relation to the addition of Rs. 14,763, Rs. 15,228 and Rs. 16,428 and not to any other. It is now not in dispute that the Revenue did not seek any reference with reference to the deletion of Rs. 10,24C, Rs. 7,600 and Rs. 2,638. The only justification for the Tribunal to refer the latter part of the question actually referred, as could be gathered from para 5 of the statement of the case, is that the question of law would otherwise be incomplete, as the basis of the decision of the Tribunal is the same with reference to both aspects of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eference application filed by the other party, the basis of his claim that a question of law sought by him should be referred. The Supreme Court also pointed out that in the second class of cases, where the order made by the Tribunal operates entirely in favour of one party, although in the course of making such an order, the Tribunal may have negatived some points of law, in which case, not being a party aggrieved by the result of the appeal, it is not open to the party to file a reference application, but if a reference application is filed by the aggrieved party, the non-applicant, in the event of the Tribunal agreeing to refer the case to the High Court, can ask for reference of those questions of law also which arise on those submissio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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