COMMISSIONER OF INCOME-TAX, MADRAS vs K. R. PATEL AND OTHERS — 1972 PTD 506

Citation: 1972 PTD 506

Court: Mysore High Court

Year: 1968

Decision Date: 1968-11-12

Parties: COMMISSIONER OF INCOME-TAX, MADRAS vs K. R. PATEL AND OTHERS

Headnotes

Case cited as 1972 PTD 506

Judgment Text

Court Name: Mysore High Court Judge(s): Ahmed Ali Khan, A. R. Somnath Iyer Title: COMMISSIONER OF INCOME-TAX, MADRAS vs K. R. PATEL AND OTHERS Case No.: Income-tax Reference Cases Nos. 18, 19 and 20 of 1967 Date of Judgment:1968-11-12 Reported As: 1972 PTD 506 Result: order made JUDGMENT JUDGMENT SOMNATH IYER, J.-A. M. Patel, R. M. Patel and Rambhai M. Patel. Were the three partners of a firm called Select Pictures Circuit. These three partners had each invested a sum of Rs. 40,000 in another concern called Cine Syndicate & Traders (Pvt.) Ltd. When the income of the partnership firm was assessed in respect of the assessment year 1950-51 that sum of Rs. 1,20,000 which had been so invested by the partners was treated as the income of the firm by Income-tax Officer and assessed accordingly. But the appeal preferred by the firm was allowed by the Appellate Assis-- tant Commissioner who recorded a finding that that sum of money was not the income of the firm. He accordingly held that it was not taxable income of the firm. But the Appellate Assistant Commissioner issued a direction in the appeal to the Income-tax Officer that he should proceed against the individual partners of the firm under the second proviso to section 31(3) of the Income-tax Act, 1922, and consider the assessability or otherwise of the part or the whole of their investment in the Cine Syndicate & Traders (Pvt.) Ltd. On the basis of this direction the Income-tax Officer reopened the assessment of the partners…

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