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TMI Blog1978 (10) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... nting period ending on March 31, 1965, was completed on November 16, 1967. This assessment was reopened under the provisions of s. 147 of the I.T. Act, 1961, to include his share income from the firm known as "Messrs. Union Import and Export Corporation, Amritsar". The assessee contended that he became a partner of the said firm on August 14, 1963, that his share in the profits and losses of the firm was 8 naye paise in a rupee and that he threw his share in the partnership in the common hotchpotch of HUF, consisting of himself, his two minor sons and his wife by making a written declaration on September 5, 1963. It was thus claimed by the assessee that the share income from the firm of Messrs. Union Import and Export Corporation, Amritsar, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the additions of Rs. 41,341 and Rs. 9,780 from the income of the assessee for the assessment years 1965-66 and 1966-67. The two references in question have been made by the Income-tax Appellate Tribunal, Amritsar, at the instance of the revenue pertaining to assessment for the assessment years 1965-66 and 1966-67 for soliciting the opinion of this court on the following question of law: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal has rightly deleted the additions of Rs. 41,341 and Rs. 9,780 from the income of the assessee for the assessment years 1965-66 and 1966-67 ?" After hearing the learned counsel for the parties, we are of the opinion that the question referred to us has to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rai, the assessee, being a coparcener of the HUF, even though the HUF had no property of its own, could throw his individual property in the common hotchpotch by making a declaration. It is also not disputed that Shri Dilbagh Rai did make such a declaration on September 5, 1963, which is as follows: "I, Dilbagh Rai, s/o. Shri Girdharilal, do hereby declare on solemn affirmation: (a) That I have thrown my share in M/s. Union Export and Import Corporation, Amritsar, in the common hotchpotch of the Hindu undivided family which is constituted by me with my sons, Rajiv and Sanjiv, and my wife, Smt. Phoolan Rani, (b) that the above declaration is absolute and irrevocable." The only contention urged by Mr. Awasthy, the learned counsel for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when a particular partner has not made capital investment, the other partners may agree to give a share to such partner in the capital of the firm. That apart, the criteria whether a partner has made contribution towards the capital or not is hardly relevant to consider the question whether a partner has a right to throw his assets in the common hotchpotch of the HUF by making a declaration. The share of a partner in the firm which is an asset can also be termed as a property. Its character would not change merely because a partner has not made contributions to the capital for the time being. In a given case, one partner may make an investment in the capital during a particular period whereas another partner may make investment in a subsequ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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