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TMI Blog1977 (9) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... ater on and invested by her in the firm of Tarachand Maganlal towards her share of capital in the firm where she was given a share of 20 per cent. The ITO applied the provisions of s. 64 and included her profit of Rs. 8,663 from the said firm in the total income of the assessee. He held that the transfer of Rs. 10,000 has directed nexus in respect of the profit earned by Mrs. Nanavati from firm Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also Smt. Kaushalya Debi became a partner in the firm of Kunjilal Hariram Co. by investing the amount which she received by way of gift from he husband. In that case also preamble states that the Jagdish Prasad Gupta the first partner who had little finance requested the other partners to enter into partnership by contributing finance for which the other partners agreed. So in that case also Smt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) was also considered. The ration laid down in the above case is directly applicable to the instant case. Following with respect the above decision I hold that the share of profit Rs. 8,963 earned by Mrs. Nanavati from the firm of M.s Tarachand Magalal cannot be included in the total income of the assessee. Accordingly I delete Rs. 8,963. 4. In the result, the appeal is allowed. - - TaxTMI - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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