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TMI Blog1946 (9) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... ee, who under the Indian Income-tax Act has to pay the full amount claimed, should have his petition to refer a question to the Court delayed in this way, and we draw the attention of the authorities concerned to it in the hope that such a delay will not occur again. The assessment year is the year 1939-40 in respect of the accounting year which is the Samvat year 1994, that is to say, in respect of the period 4th of November, 1937, to the 23rd of October, 1938. Mr. Haridas Purshottam, who was the assessee, has, during the course of the long delay, died, and his son, who is now the karta of the joint family in his father's stead, has been brought on the record. During his lifetime Mr. Haridas filed two returns for income-tax purpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se was an agreement between the new company and the eight vendors, that is to say the three brothers and the five other persons, for the purchase of the mills. The three brothers received, by way of consideration, 1,000 shares in the new company and a sum of cash, and again there is no dispute that each brother held his 3331/3 shares as karta of his respective joint family. Clause 7 of this agreement is as follows :- It is hereby expressly agreed that all benefits conferred upon the said firm (that is to say the three brothers and the five other persons) by these presents and all benefits conferred or to be conferred upon the said firm by the second agreement referred to in article 150 of the articles of association of the company unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration. Clause 14 is in these terms :- It shall be lawful for the said firm to assign the whole or any portion of their remuneration, without thereby in any way affecting or prejudicing their appointment as such managing agents as aforesaid. It is necessary to refer to the following further facts stated in the case referred to us :- Pursuant to the agreement of the 21st July, 1920, the said firm of Purshottam Govindji Company received the managing agency commission from time to time which was divided between the partners thereof, and the firm of Purshottam Govindji consisting of the three undivided families duly received their shares of the commission. The share of each family in the commission as aforesaid has been shown ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... karta )is not the agent of the members of the family so as to make them liable to be sued as if they were the principals of the manager. The relation of such person is not that of principal or agent, or of partners; it is much more like that of trustee and cestui que trust. However, the facts of the case before us are wholly different from those in the case before Mr. Justice Chagla to which I have referred. As is recited in the managing agency agreement, it is provided by the articles of association of the new company that Messrs. Purshottam Govindji Co., should be appointed managing agents, and there can be no doubt that this arrangement was part and parcel of the arrangements, whereby the Hubli Mills, in which the assessee admitt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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