9911796707
TMI Blog1993 (10) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... " For the reasons briefly indicated hereinafter, we answer the question against the assessee and in favour of the Revenue. We hold that the finding of fact arrived at by all the authorities below that the assessee was a member of an association of persons is correct. We also hold that the Tribunal and the authorities below applied the relevant principles laid down by the judgments of the Supreme Court while deciding this question and the order of the Tribunal does not suffer from any legal infirmity. Let us summarise the material facts. At all material times, the French Government, in Pondicherry, used to issue two kinds of import permits known as "attestations" and "authorisations", also called "customs clearance permits", i.e., CCPs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see at Bombay. However, no return was filed by the assessee in respect of the above-referred transactions effected on a large scale involving crores of rupees. Some time in August, 1966, the Income-tax Department conducted a search under section 132 of the Act at the office of Madhusudan Gordhandas and Co. and also at the residential premises of its partners. Such search was also conducted at the place of B. B. Bawa, S. L. Sharma and Narain Cheimull and at the place of some of the persons who were holders of customs clearance permits. A large number of books of account, documents and incriminating papers were seized. Scrutiny of these documents revealed that there was a planning on the part of the said B. B. Bawa, S. L. Sharma and Narain Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authorities below reached the conclusion that the assessee was a live wire of the association of persons and the assessee was the effective and principal party to the joint venture for making income from the abovereferred transaction for the benefit of all of them. The three authorities below did not accept the assessee's contention that the assessee was merely performing some of the duties assigned to the assessee by the above-referred three individuals named hereinabove. The Income-tax Tribunal took the view that in any event the ratio in which the profits of the joint venture were shared or agreed to be shared between the four members of the association of persons including the assessee as alleged by the assessee, even if true, was not g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gains. The question to be asked by the court is as to whether there was proper material before the Tribunal to reach the conclusion that the assessee was a party to the joint venture formed with the object of producing income. We have no hesitation whatsoever in reaching the conclusion that having regard to the facts and circumstances of the case, the assessee was a party to the joint venture or joint enterprise along with the three individuals named in the earlier part of the judgment for the purposes of producing income from the business of importing the goods and selling the same at a profit and the view taken by the Tribunal is correct. Learned counsel for the assessee has relied upon the judgment of the Calcutta High Court in the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The fact remains that the three individuals named in the opening part of this order and the assessee-firm had jointly effected all the transactions with the common purpose of producing income and the assessee played the most important role in connection with the carrying on and operation of business of the joint venture. Learned counsel for the assessee also submitted that the assessee cannot be considered as a member of the association of persons as the assessee joined the joint venture a little later and not from the inception. With respect, this submission is totally irrelevant. After careful consideration of the entire material on record, all the authorities below including the Income-tax Appellate Tribunal reached the conclusion of fac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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