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TMI Blog1974 (7) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... ue to any or all the partners of the firm and allocate the same among the partners ?" Assessee, Shanker Refrigeration Company, is a registered firm, which during the accounting year ending 31st January, 1963, relevant to the assessment year 1964-65, constructed refrigeration plants at Narayanpur, near Calcutta. It claimed relief under section 84 of the Income-tax Act, 1961, by reference to the capital employed by it as a new industrial undertaking. The Income-tax Officer found that the assessee was entitled to a rebate, amounting to Rs. 42,490 under section 84 of the Act and drew up the assessment order accordingly. He, however, went on to observe in the assessment order that no rebate on this account will be given in the hands of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e no operative value at all in so far as the cases of the partners are concerned. The claim of the partners regarding relief under section 84 will be treated on merits and in accordance with law in their respective cases." The assessee not being satisfied with the order passed by the Tribunal, made an application requesting it to state the case and refer two questions of law for the opinion of this court. The Tribunal came to the conclusion that the two questions formulated by the assessee did not arise from out of its order but the real question that arose for consideration, and which was a question of law which could be referred to the High Court was the one which has already been quoted in the earlier portion of this judgment. It accor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partners of a firm is the income of the firm. Since "rebate" admissible to its partners cannot be said to be the income of the firm, no question of apportioning or allocating the same to the partners constituting the firm arises. Accordingly, in proceedings for the assessment of the firm, the question regarding admissibility of rebate under section 84 of the Act to individual partners could not be gone into. Learned counsel for the assessee relied upon a Division Bench decision of this court in Commissioner of Income-tax v. Globe Engineers (P.) Ltd., wherein it had been held that where a registered firm manufactures or processes articles in an industrial undertaking, every partner of the registered firm does so and would also be entitled ..... X X X X Extracts X X X X X X X X Extracts X X X X
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