9911796707
|
Home
Issues:
1. Disruption of Hindu undivided family. 2. Assessment of income from multiple shops. 3. Legal authority to assess income of all shops under one individual. Analysis: 1. The case involved Messrs. Mathra Das and Sons, where Mathra Das claimed that a will made in August 1929 evidenced the disruption of the Hindu undivided family, as he had allegedly given certain shops to his sons in May 1929. However, the court found that the document was merely a will disposing of four shops and did not confer a title, thus failing to prove the disruption of the family under the Income Tax Act. 2. The Income Tax Authorities had assessed Mathra Das and Sons for profits from all shops, including those allegedly given to sons. The court noted that in a previous assessment, only income from the Bannu shop was considered due to a claimed partition. Despite the acceptance of partition in the past, the Authorities deemed the current transaction as bogus, leading to the inclusion of all shop profits in Mathra Das's assessment. The court upheld this decision, indicating that the assessment was legally sound. 3. The court addressed whether it was lawful to assess all shop incomes under Mathra Das as head of the family. Given the findings of a purportedly fake transaction and lack of evidence for a genuine partition or gift, the court concluded that the assessment was valid. Consequently, the questions were answered against the assessee, affirming the assessment of all shop profits under Mathra Das. The judgment was in favor of the Income Tax Commissioner, with costs to be borne by the petitioner.
|
