9911796707
TMI Blog1983 (9) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... Concessions) Order, 1964 ? " The assessee carried on the business of road, building and forest contractor in the Union territory of Goa during the relevant assessment years 1964-65 to 1969-70. The Partnership Act was extended to Goa with effect from March 15, 1964. A partnership deed was executed by the partners of the assessee on March 30, 1964. The I.T. Act became applicable to Goa on and after April 1, 1963. The Dadra and Nagar Haveli and Goa, Daman and Diu (Taxation Concessions) Order, 1964, gave to the assessees who carried on any business in Goa before the appointed date, i.e., December 20, 1961, the benefit of the concessions therein stated. The assessee claimed the benefit of the concessions under the said Taxation Concess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere carrying on jointly the business of construction and timber in Goa for a long time prior to December 19, 1961. A certificate by the Sarpanch of Kurti Kandepar Gram Panchayat stated that the four persons ' have been carrying on jointly as contractors' and timber business in Goa for a long time prior to December 19, 1961. Upon this material, the Tribunal said thus: " 19. The assessee is a partnership concern. A stand has been taken that a partnership constituted of the same members was doing business earlier. We do not think that the assessee has been able to prove that firm as such was functioning before the appointed day. The basic requirements of a partnership are: (1) that there must be an agreement entered into by all the perso ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous other relations which arise by operation of law and from agreement. This is illustrated in the case of joint owners, joint heirs and joint legatees among other persons having joint or common interest in property who do not simply by reason of their community of interest become partners. The most important ingredient is of mutual agency. The fundamental principle is that partners when carrying on business of a firm are agents as well as principals. There is no proof on record that the group of persons who were said to have been doing business jointly were acting in such capacity. Carrying on business jointly may denote an agreement, yet as to whether each can represent the others and vice versa has to be shown. We quote the observatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nted day, they had not been carrying on business in partnership, for, " the firm " was only the status in which they were liable to be assessed. Reliance was placed upon the judgment of the Allahabad High Court in ITO v. Vinod Krishna Son Prakash [1979] 117 ITR 594, wherein it was held relying upon Explanation 2 to s. 143 that the assessment " of a firm as a registered firm or as an unregistered firm is a matter of status". We are unable to accept Mr. Pandit's argument. Section 2(7) defines "an assessee" to mean a person by whom any tax or any other sum of money is payable under the Act. " Person " is defined by s. 2(31) to include firm. Section 4 places the charge of income-tax upon the total income of every person. Quite clearly, theref ..... X X X X Extracts X X X X X X X X Extracts X X X X
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