9911796707
TMI Blog1970 (7) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by GOVINDA BHAT J.-This is a reference under section 256(1) of the Income-tax Act, 1961, made at the instance of the assessee. The question of law referred for our opinion is : "Whether, on the facts and in the circumstances of the case, and the provisions of the Partnership Act, the sum of Rs. 50,000 was properly assessable in the previous year relevant for the assessment year 1962-63 ?" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve of the deceased, J. B. Pinto, became entitled to interest at the rate of 6 per cent. per annum on the amount of the said J. B. Pinto's share in the properties of the other two firms. Disputes arose between the assessee on the one hand and the surviving partners of the said five firms on the other. The dispute ultimately ended in a settlement under which the assessee executed a release deed date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 50,000 ought to have been assessed in the assessment years 1959-60 and 1960-61, since the assessee followed the mercantile system of accounting. The Appellate Assistant Commissioner and also the Tribunal have rejected that contention and assessed the assessee on the receipt basis which was during the relevant previous year to the assessment year 1962-63. In the assessment order made by the Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceased were entitled to interest on the amounts due at 5 per cent per annum. In regard to the remaining two firms, by virtue of section 37 of the Indian Partnership Act, the legal heirs of the deceased became entitled to interest at 6 per cent. on the amount of the deceased's share in the properties of the firms. Therefore, by virtue of the statute and also by virtue of the terms of the partnersh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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