9911796707
TMI Blog1994 (2) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... ain firm. A partnership deed was executed consisting of four partners, three major and one minor. The partners are Jainarain, Purshottam, Ram Kishore and Jugal Kishore. The allegation was levelled against Champalal also, who happened to be the father of Jainarain, Purshottam and Ram Kishore. Champalal has expired during the pendency of the proceedings. The partnership deed has shown four partners but profit of the firm in these years have been divided among five partners and later on it was corrected also that profit of the firm is divided among four partners. The Income-tax return to this effect has been filed. On scrutiny, the Income-tax Officer found that the partnership firm shows that there are four partners. Ramniwas was not a partner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g counsel for the Department that by distributing the profits of the firm in these three years among five partners whether any tax effect is there, whether the petitioners have paid less tax, he failed to answer the query. Heard learned counsel for the petitioners and learned standing counsel for the Department. The facts are not in dispute that the partnership deed shows four partners, viz., Jainarain, Purshottam, Ram Kishore and Jugal Kishore, but profit of the firm has been distributed among five partners. On that account, the firm was treated as unregistered and the entire income of the firm was assessed as such. Therefore, the partners had to pay the tax as an unregistered firm. On perusal, it reveals that in the assessment year 1966 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 years have passed from the accounting year till today and no tax benefit was given to the firm. Nothing was concealed. Even the partnership deed was filed along with the return indicating the true position of the partnership deed. The complaint was filed in 1977 and charges were framed in August, 1991. That shows that the prosecution, as well as the court has taken more than 14 years in framing the charge. Whether it is not amounting to denial of justice and fundamental right of the partners to complete the trial within reasonable time. In various decisions of this court as well as the apex court, it has been held that speedy and fair trial is a fundamental right of the citizens and within reasonable time, the trial be completed. Even s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m was assessed as an unregistered firm. So no benefit of the registered firm was given to the partners. Even they have not concealed the fact regarding the partnership deed as well as the profit distributed among the partners. This is a small firm having petty income in these years ranging from Rs. 6,188 to Rs. 21,132. Even it can be a case of misleading by the accountant or chartered accountant or legal adviser of the firm. There appears to be no intention on the part of the accused partners specially when the business of the firm in these years was looked after by their father, Shri Champalal, who is no more in this world. About 30 years have elapsed from the date of the first accounting year in this case till today. After the filing of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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