1985 (4) TMI 25

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..... f the case, the learned Income-tax Appellate Tribunal was justified in law to hold that the loss of Rs. 12,865 claimed by the assessee was not a share of loss from an unregistered firm or an association of persons and that the departmental authorities were not right in disallowing the loss ? 2. Whether, on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal was justified in not disallowing the aforesaid loss of Rs. 12,865 on the ground that it pertained to the preceding year and not to the assessment year 1970-71 ? " The assessee-respondent has some transactions in cotton in partnership with Shri Shreeniwas Jugal Kishore, Nimbahera. The transactions consisted of purchase of 104 bales of cotton on .....

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..... n appeal by the Appellate Assistant Commissioner. The Tribunal came to the conclusion that the loss in question belonged to an association of persons and as, according to him, the joint venture, the assessee rightly claimed the loss as a set off against the business profits. It, therefore, allowed the claim of the assessee. An application under section 256(1) of the Act was filed by the Commissioner of Income-tax. The Tribunal rejected the application by its order dated June 21, 1979, holding as under: 1. That there is no material on record to show that the parties had entered into a partnership and this being a finding of fact, no question of law can be said to arise out of the order. 2. That the Appellate Assistant Commissioner had .....

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..... hased jointly with Shreeniwas Jugal Kishore, Nimbahera. All the bales that were purchased were sold in one lot. The total loss from the transaction was Rs. 17,096.50. Loss of Rs. 12,865 was entered in the account books of the assessee being 12 annas share of the loss in the transaction of sale of cotton bales. A sum of Rs. 4,240.33 was the share of loss of Shri Shreeniwas Jugal Kishore, Nimbahera. It comes to 4 annas share. On these facts, in our opinion, whether, it is a case of joint venture or the joint purchase of bales of cotton for resale was in the nature of a partnership, does give rise to a question of law. On the facts found by the Tribunal, whether it was a joint venture of the assessee and Shri Shreeniwas Jugal Kishore, Nimba .....

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