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TMI Blog1978 (2) TMI 189X X X X Extracts X X X X X X X X Extracts X X X X ..... nt firms or partnerships can, in the eye of law, be regarded as one person, or should be treated as two separate assessable units or entities for the purposes of the General Sales Tax Act, 1963. The Appellate Tribunal took the view that the turnover from sales by one of the partnerships had not been brought into account by the other partnership constituted by the same partners as the first. The Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yana High Court in R.N. Oswal Hosiery Mahabir Woollen Mills v. Commissioner of Income-tax, Punjab[1968] 70 I.T.R. 843.. That has surveyed the development of the law in regard to this aspect of the matter beginning from the early dictum in the decision of a Division Bench of the Bombay High Court consisting of Beaumont, C.J., and Chagla, J. (as he then was) in Vissonji Sons Co. v. Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of Income-tax, Madras v. R.M. Chidambaram Pillai[1977] 106 I.T.R. 292 (S.C.)., which takes the view that a firm is not a legal person even though it has some attributes of legal personality. In income-tax law a firm is a unit of assessment, by special provisions, but not a full legal person. It was ruled that as a contract of employment requires two distinct persons, the employer and the empl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ough Subba Rao, J., ruled that although in the partnership law a firm is not a legal entity but in law consists of only persons who are partners for the time being, as far as tax law, both income-tax and sales tax, is concerned, it is a legal entity. The principle was stated in clear terms on an examination of the provisions of the concerned taxing statute. That appears to run through the provisio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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