TMI Blog1978 (10) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee and his two major sons. His minor son, Gulabchand, was admitted to the benefits of the partnership. According to the case of the assessee, this firm was dissolved in the previous year corresponding to the assessment year 1961-62 and a new firm, by name M/s. Gulabchand Chimanlal was constituted. There were three partners in this firm, namely, Hemchand Tarachand, Pratapchand Laxmichand and Smt. Laxmiben. Laxmiben is the wife of the assessee, Chimanlal. Minor Gulabchand was also admitted to the benefits of the partnership. The first two partners are outsiders. The firm applied for registration which was granted and the firm was held to be genuine. The proceedings relating to the registration of the firm terminated by order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e paltry capital of Rs. 3,500 only and the lady, Laxmiben, would be in a position to carry on the affairs of this firm, M/s. Gulabchand Chimanlal, in their own right. It appears from the evidence of Chimanlal himself that he was managing the affairs of the firm, booking orders, keeping the check on the sales and also on the accounts and that he alone is the moving spirit behind the entire work of this firm and Mrs. Laxmiben is only a veil behind which the real person working is the assessee himself. The business premises continued to be the same as were being used by Chimanlal Umaji and Sons. The available records clearly show that it is Chimanlal, the assessee, who has put up Laxmiben as a partner in the new firm, otherwise there is no jus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent. as share in the profits of the firm. The minor, Gulabchand, was admitted to the benefits of the firm to the extent of 25 per cent. As observed by the Tribunal, the entire business running into crores of rupees was managed by the assessee and he was the moving spirit behind the entire business of the firm. The inference that Laxmiben was a mere benamidar for the assessee, in our opinion, in the circumstances of the case, does not involve the application of any principle of law, and the Tribunal cannot be directed to refer a question on that point. In Sree Meenakshi Mills Ltd. v. CIT [1957] 31 ITR 28, the Supreme Court held that an inference from the facts of a case that a transaction is a benami transaction does not involve the applic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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