9911796707
TMI Blog1980 (4) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany. The company became a partner in the firm styled as Kohinoor Paint Colour and Varnish Works,Amritsarin terms of a partnership deed dt.1st April, 1974. The share of profits specified in the case of the company was 1/6th only. The assessee has credited to its profit and loss account its share of profit from the firm at Rs. 68,158. Actually the share after the assessment in the case of the firm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ord. 3. The assessee appealed to the AAC of IT. It was pointed out that there could not be two opinions about the company being a manufacturing company and, therefore, the tax should have been charged at 55 per cent. It was further pointed out that in the assessment order the ITO did not reveal the rate of tax and it was only after the assessment order was served on the assessee that it discover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee as a partner, on the rationale of the decision of the Madras High Court in CIT, Madras vs. N.C. Sadagopan(1). It was pointed out that in that case the Madras High Court had relied on the decision of the Supreme Court in CIT vs. Ramnikal Kothari(2), holding that in the case of a partnership the business is not carried on by the partnership as such, but the business shall be deemed to be t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d @ 55 per cent. The Department Representative relied on the orders of the authorities below and submitted that the point was debatable and consequently the relief claimed by the assessee could not be allowed under s. 154 of the Act. 5. We have considered the submissions of the parties. The proposition of law relied on by the assessee is self-evident. It has been ruled by the Supreme Court in CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the registered firm does so and would also be entitled to any rebate in income-tax allowed to a manufacturer". It is further not disputed that the assessee company has been charged tax @ 55 per cent in the subsequent asst. yr. 1976-77. Therefore, on the basis of the admitted facts and the proposition laid down by the Supreme Court, it is a clear case in which the assessee company ought to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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