9911796707
TMI Blog2015 (1) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... aw - the facts and figures pertaining to both the firms were furnished separately in the returns - mere fact that the same partners happened to be the partners in two separate firms, does not constitute the basis to treat both the firms as one entity, in the context of submitting the returns - once separate accounts were opened and operated for each of the firms, there is no way, that a common return could have been filed for them - both the firms have separate channels, be it of constitution or maintenance of accounts – thus, the loss earned by one firm cannot be pitted or set off against the profits of the other firm – the order of the Tribunal is upheld – Decided against assessee. - ITTA. No. 49 of 2002 - - - Dated:- 9-12-2014 - L. Na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der of assessment. Aggrieved by that, the appellant filed an appeal before the Commissioner of Income Tax (Appeals) II, Hyderabad. The appeal was allowed through order dated 17.02.1994. Challenging the order of the Commissioner (Appeals), the Department filed I.T.A. before the Tribunal. The appeal was allowed and the order passed by the Commissioner was set aside. Smt. K. Neeraja, learned counsel for the appellant submits that though two separate firms were constituted, the partners in both the firms are one and the same and only one income tax return was submitted. She contends that the Assessing Officer and the Tribunal were not justified in treating the two firms separately. She further contends that the mere fact that two partners jo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,001/- and that of M/s.Hymavathi Enterprises at ₹ 5,79,852/-. The combined figure of these losses was pitted against the house property income of the appellant firm of ₹ 6,04,480/-. As a result, the net loss of ₹ 46,420/- was shown. This was not accepted by the Assessing Officer and his view was upheld by the Tribunal. The mere fact that the same partners happened to be the partners in two separate firms, does not constitute the basis to treat both the firms as one entity, in the context of submitting the returns. Though a firm is not an independent legal entity when compared to a company, in the context of the Income Tax Act, 1961, it is an independent separate assessee. Secondly, in case, the relation of both the firm ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
