9911796707
TMI Blog1997 (7) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... covered under the present appeal, also it claimed in the return that it carried on business of servicing. The income from godowns and premises was claimed to be comprised of rent plus service charges. The service charges were claimed as business income. The total receipts from service charges during the year were Rs. 23,976 and the total expenses incurred for the same were Rs. 18,656. The balance shown was as income from business. Besides, staff salary of Rs. 18,156 was combined for collection as well as service work. 2. The Assessing Officer (A.O.) did not accept the claim. He held that the receipts from the service charges were also part of the rent receipts. He, therefore, allowed deduction admissible from the gross receipts of rent a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has come up in second appeal before this Tribunal. 6. In the grounds of appeal as many as 7 grounds have been taken but only Ground No. 6 pressed in the course of hearing of the appeal. Other grounds were not pressed by the ld. counsel for the assessee. 7. The ld. counsel submitted before us that the ld. CIT(Appeals) ought to have accepted the submission that the correct status, in the case, would be A.O.P. because the Assessing Officer had not accepted the claim that the assessee derives income from business. The service charges received from the letting of the godown and premises were assessed by the Assessing Officer along with the rent under the head 'Income from house property' but the ld. CIT(Appeals) was of the view tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submissions and contentions of the rival parties. No doubt, carrying on business is one of the essential ingredients of a Partnership. Section 2(23) of the I.T. Act says that "Firm", "Partner" and "Partnership" have the meanings respectively assigned to them in the Indian Partnership Act, 1932. Section 4 of the Indian Partnership Act says that partnership is the relation between the persons who have agreed to share the profits of a business carried on by all or any of them acting for all. Thus, the existence of a business and carrying on of a business is an essential ingredients of the partnership. Since the Partnership has been assigned the same meaning by section 2(23) of the Income-tax Act-as given in section 4 of the Indian Partnership ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n goods in the assessment year 1992-93, covered under the present appeal. This temporary discontinuation of the business alone cannot detract from the existence of the partnership firm during the year under appeal. The firm was formed with the object and intention of carrying on business in iron goods and it carried on the same up to the assessment year 1991-92. Merely because the said business was not carried on in the assessment year in question, it cannot be said that the valid partnership had come to an end. The partnership firm existed up to the assessment year 1991-92 and the intentions of the partners were clear to continue the partnership after 1991-92 also. 13. The fact that the incomes from the service charges were assessed as i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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