9911796707
TMI Blog1990 (3) TMI 106X X X X Extracts X X X X X X X X Extracts X X X X ..... 000 each. In assessment year 1983-84 also total fixed deposits in the names of partners was Rs. 1,20,000. However break up of such deposit was different. For Uttam Kr. Paul there was no such fixed deposit a/c. and for Prasanta Kr. Paul it was for Rs. 60,000 and the other two partners held Rs. 30,000 each. Assessment year 1982-83 reflected the same pattern as in assessment year 1983-84. In assessment year 1981-82 Prasanta Kr. Paul only had fixed deposit a/c. and it was Rs. 30,000. This is the first year where the assessee firm had investment in fixed deposit in the name of a partner. Subsequently the amount of fixed deposit was enhanced and investments stood in the names of other partners also. Pattern of this a/c. shows that it was purely a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the partners had the capital amounting to Rs. 42,472 in the assessment year 1981-82, Rs. 1,31,546 in the assessment year 1982-83, Rs. 1,86,470 in the assessment year 1983-84 and Rs. 2,27,561 in the assessment year 1984-85 while the fixed deposits in the corresponding period were Rs. 30,000 in the assessment year 1981-82, and Rs. 1,20,000 each in the assessment years 1982-83, 1983-84 and 1984-85. The said fixed deposits were in the names of the partners and the interest receivable was shown in the names of individual partners. The total deposits were divided amongst four partners having Rs. 30,000 each. Thus, the fixed deposits were not the investments made by the firm. The said deposits were shown in the Balance Sheet to impress the custom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the addition of Rs. 10,903 on account of accrued interest on fixed deposits standing in the names of the partners on behalf of the firm. 5. The assessee's counsel filed a copy of order of the Tribunal dated 4-7-1989 in the assessee's case for the assessment years 1981-82, 1982-83 and 1983-84. He urged that the interest amount of Rs. 10,903 is not includible in the income of the firm as per the said Tribunal's order and that the fixed deposit of Rs. 1,20,000 was in the Balance Sheet of the firm to boost up the image of the assessee-firm. 6. We have considered the rival submissions. At the time of hearing of the appeal, we asked the assessee's counsel whether debits were given in the accounts of the partners in whose names the fixed de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the bank by utilising the money of the assessee firm. The ultimate test determining whether the property is the partnership property is the intention of the parties or the agreement between the partners. In the absence of such an agreement, the property would be deemed to be the property of the firm, i.e. partnership property, the following cases : (a) if it is originally brought into the stock of the firm; or (b) if it is acquired, by purchase or otherwise by or for the firm; or (c) if it is acquired, by purchase or otherwise, for the purpose and in the course of the business of the firm; or (d) in the absence of a contrary intention, if it is acquired with money belonging to the firm. " In the present case, the assessee's counse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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