9911796707
TMI Blog1990 (12) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee complained that a further statement would be necessary in order to answer the question. The matter was heard and, by order dated January 14, 1988, a direction was issued to the Tribunal to draw up a supplementary statement of case in the light of the observations made in that order. Accordingly, on November 4, 1988, the Tribunal submitted a supplementary statement. The assessee in this case is R. J. Trivedi and Sons. It is a partnership firm. Shri R. J. Trivedi is one of its partners. Yet another firm bearing the name J. A. Trivedi and Brothers was the owner of Western Barkuhi Collieries and Ghorawari Hirdagarh Collieries. Between these two firms (viz., the assessee and the owners of the mines) an agreement was executed. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... head 'Profits and gains of business or profession', . . . (b) in the case of any firm, any payment of interest, salary, bonus, commission or remuneration made by the firm to any partner of the firm." A Full Bench of this court, in CIT v. Narbharam Popatbhai and Sons [1987] 166 ITR 534, approving a Division Bench decision in Balchand Hashmatrai and Co. v. CIT [1986] 161 ITR 121 (MP), held that, if a person is a partner in a firm in a representative capacity and if such partner lends to the firm monies belonging to him individually, then the interest paid by the firm to such partner on the monies lent by him is not liable to be added back under section 40(b) of the Act. In fact, when this court desired the Tribunal to submit a supplementa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n that the salary was paid to Shri R. J. Trivedi not as an agent of the mine owners but as a partner of the assessee-firm. It, therefore, cannot be said that there is no basis for the conclusion the Commissioner of Income-tax (Appeals) has reached and which conclusion the Appellate Tribunal has affirmed. Shri Purohit, learned counsel for the assessee-firm, whose submission ex facie appears to be convincing, very ably submitted with reference to the other clauses of the agreement that it is Shri R. J. Trivedi who was to act as an agent of the mine owners and the only inference from the other terms of the agreement is that the mine owners who, under the mining statute, were obliged to appoint an agent to look after the mining operations, ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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