1998 (9) TMI 69

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..... red the following, questions of law for the opinion of this court. Questions Nos. 1 and 2 are referred at the instance of the assessee while question No. 3 is referred at the instance of the Revenue. "1. Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the provisions of section 189 are not applicable in assessing the amount of Rs. 7,46,47 .....

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..... er in person or through any counsel. As regards question No. 3, the facts in brief are as follows : The assessee is an individual. He was the tenderer for the construction of two aqueducts in Lower Sileru Project. In order to effectively carry out the construction, three different partnership firms were constituted which under took the work in three separate sections. The three firms were (1) Y. .....

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..... assessed the amount in the hands of the assessee on the ground that he is the recipient of the amount, while the assessee contended that he is a trustee and the actual recipients of the amount are the three firms which were constituted for the purpose of executing the contract works and which have executed the works. On appeal, the Commissioner of Income-tax held that the concerned firms have to .....

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..... ed after the discontinuance shall be deemed to be the income of the recipient and charged to tax accordingly in the year of receipt, if such sum would have been included in the total income of the person who carried on the business had such sum been received before such discontinuance." The finding of the Tribunal is that the assessee who was the tenderer entrusted the execution of the work of t .....

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..... ce of the business by the three firms, the amount received after discontinuance shall be deemed to be the income of the recipient and charged to tax in the year of receipt, as, had he received the same before discontinuance he would have been liable to pay tax. Prior to discontinuance, the three firms are entitled to receive income. It is only on account of the discontinuance of the firms, the a .....

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