9911796707
TMI Blog1952 (4) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... . The assessee is a Hindu undivided family. The only question that arises for consideration in this reference is, whether the income derived by Hanumanthappa and his son under the managing agency agreement with the Davangere Cotton Mills Company, entered into on 15th March, 1937, should be included in the total income of the assessee under Section 16 of the Act. Being an income which accrued in the Native State, it is exempt under Section 14 of the Act from tax, but it could be taken into consideration under Section 16 of the Act in computing the total income of the assessee for the purpose of determining the rate. It is from that point of view that the question becomes releyant. The joint family was carrying on business in British In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cause they were not purporting to act on behalf of and for the benefit of the joint family. The fact therefore that the disability which, under the law as it now exists, viz., that a joint family as such could not enter in up a managing agency agreement, did not exist when this agreement was entered into in Mysore State would not help the revenue authorities to enable them to include this income in the total income of the assessee. On 20th March, 1940, the deed of partnership was executed between the two, Hanumanthappa and Rama Setty, whereunder it was stated that even on 15th March, 1937, when the managing agency agreement was entered into with the company, it was decided that the two individuals should constitute themselves into a partner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der consideration is long after the date of this partnership deed, whatever the position might have been before 1940, this deed of partnership makes it clear that the income earned by these two persons as partners was not the income of the joint family but is the individual income of the partners. The circumstance under which the commission earned by the members of a Hindu undivided family. could be made an income of the Hindu undivided family was considered in this Court in Murugappa Chetty and Son' s case (supra ) As pointed out in that judgment, merely because in the previous years the assessee did not object to treat the income as income of the joint family (sic) would not convert the subsequent income which accrued into a joint fam ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
