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TMI Blog1991 (11) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... firm to their respective wives during the subsistence of the partnership firm ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee-firm could not be assessed to tax on rental income from property at Madras from July, 1982 ?" The dispute relates to one T. Omer and Company, a partnership firm (hereinafter referred to as " the assessee "). The factual position so far as is relevant for the purpose of determination of the questions is that a building was purchased in the name of the assessee on March 12, 1982. During the assessment year 1983-84, with which we are presently concerned, each of the partners of the firm made a gift of a portion of the property to his wife on Ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the partners had the right to transfer the property. Valid gift deeds were executed by the partners in favour of their respective wives and, in that view of the matter, the rental income from the property was to be included only for the period from April to June, 1982. At the instance of the Revenue, the aforesaid questions have been referred for our adjudication. In spite of notice, the assessee has not entered appearance. Mr. A. K. Ray, learned standing counsel, has urged that, during the subsistence of the partnership, no partner had any definite share in the partnership property even though the partnership firm is not a legal entity and has no existence in the strict sense of the term. During the subsistence of the partnership, n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tner can deal with any portion of the property as his own during the subsistence of the partnership nor can he assign his interest in a specific item of the partnership property to anyone. His right is to obtain such profits, if any, as fall to his share from time to time and, upon dissolution of the firm, to a share in the assets of the firm which remain after satisfying the liabilities set out in the various clauses of section 48 A partner would not be able to exercise his right even to the extent of his share in the business of the partnership. It is true that, even during subsistence of the partnership, a partner may assign his share to another. But what is permissible in that regard is laid down in section 29(1) of the Partnership Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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