9911796707
TMI Blog1981 (1) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... r under consideration came to Rs. 28,474. 80. The case of the assessee before the ITO was that the said share income was the income of the partners of M/s Sangathan Weekly and not his individual income. This plea of the assessee has been negatived by the WTO, who has added the entire determined share of the assessee in M/s Modern Construction Co. of Rs. 33,740 to his total income for the year. 3. Aggrieved by the said addition, the assessee brought the matter by way of appeal before the AAC of IT, Spl. Range, Kanpur who has upheld the above view of the ITO by observing as under: "Firstly the natural course of events should be believed. If there was an agreement between the partners of M/s. Sangthan Weekly asking Shri Bhagwan Das to jo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have heard both the ld. counsel for the assessee Sri, B.L. Sharma and the Deptl. Rep. The ld. Counsel for the assessee has taken us through partnership Deed witnessing the firm styled as M/s Sangathan Weekly dt. 11th March, 1969. Cl. 3 thereof permits the partners to add any other business to their respective present trade by mutual consent of the partners. He next took us through agreement amongst all the partners of M/s. Snagathan Weekly dt. 1st April 1972, whereby the assessee Bhagwan Das was to enter into agreement of partnership with two others in respect of the business to be carried on under the name and style of M/s. Modern Construction Co., and that the assessee was to be there in the said firm as the representative of all the part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pril, 1972. The said document is not shown to be bogus or vague. The genuineness of this document cannot be doubted. Once that is accepted, it is clear, as agreed to therein that the assessee was to enter into partnership agreement with two others to carry on the business under the name and style of M/s. Modern Construction Co. and that he was to be the partner therein in his representative capacity representing himself and three other partners of M/s. Sangathan Weekly. The capital required by the assessee as a partner of M/s. Modern Construction Co. was to be provided by the firm M/s. Sangathan Weekly and the said capital was provided, though sometime it was shown in the books of M/s. Sangthan Weekly in the name of the assessee and at othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Weekly by transferring the said amount of Rs. 39,688 to the new account in the name of Bhagwan Das for M/s. Modern Construction Co's account proves nothing but the requisite agreement amongst all the partners of M/s. Sangathan Weekly to contribute that amount by way of capital in the said firm of M/s. Modern Construction Co. We, therefore on the facts and circumstances of the case and the material on record hold that the assessee was a partner in M/s. Modern Construction Co. representing himself and his three other partners in M/s. Sangathan Weekly. The addition of Rs. 33,740 made to the total income of the assessee is, therefore deleted. We may aid that similar addition has been made in the assessment of M/s. Sangathan Weekly for the yea ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
