9911796707
TMI Blog1980 (11) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the respondent (Smt. Kamla Vati) and that only 1/3rd of 40 per cent share in the name of Shri Sohan Lal from the firm, after deducting interest paid to the HUF and unmarried daughters of Shri Sohan Lal, as done in the earlier assessment year, was assessable. 2. To understand the controversy projecting from the Revenue's memorandum of appeal it is necessary to involve ourselves with the factual history. Shri Sohan Lal was a partner in the firm with 40 per cent share of profits/losses upto 31st March, 1967 and it is an accepted position that he was partner in the said firm in his representative capacity as Karta of his HUF which consisted of himself, his wife, his miner son Anil Kumar and daughters. 3. On 14th March, 1968, the HUF ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest in Shri Sohan Lal's share interest in the firm and even indicated his mind that the arrangement according to him constituted a sub-partnership but eventually accepted the assessee's contention that there was no sub-partnership. 5. Before proceeding further, we like to make it clear that during the course of assessment proceedings for the asst. yr. 1968-69 in the case of the HUF, a claim of partial partition was made before the ITO in terms of s. 171 of the IT Act, 1961, hereinafter briefly referred to as the Act, and it was after acceptance of such claim that the ITO raised assessments in respect of Shri Sohan Lal's share interest for the asst. yr. 1968-69 as stated above. Since one of the contentions for the Revenue raised before u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artition." 6. For the asst. yrs. 1969-70 to 1973-74, the IT Authorities continued to assess Shri Sohan Lal, his wife and his son on the basis that after 14th March, 1968 the said three persons had become equally entitled and liable in respect of share interest in Shri Sohan Lal's name in the firm. 7. For the asst. yr. 1974-75 under appeal, the ITO for the first time, raised certain queries and vide his letter dt. 18th March, 1977 projected his intention that share income from the firm was assessable as income from the firm was assessable as income of sub-partnership firm constituted of Shri Sohan Lal his wife and his son. The ITO also intended that by virtue of the provisions of s. 64 of the Act, share income of Shri Sohan Lal as well ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of an over-riding title, arrangement of dividing shares of certain persons of certain firms constituted sub-partnership. In those cases, for the purpose of hearing the facts in the case of M/s. Nohar Chand Kamla Wati Sons in ITA No. 797, were agreed as typical and therefore constituting the necessary basis for deciding all those appeals mentioned above. 10. Nohar Chand was a partner in the firm named M/s. Swarup Chand Hans Raj, upto 1st April, 1968 in his representative capacity and effected a partial partition by dividing the family capital between various members. The ITO in that case also accepted partial partition claim on 18th June, 1971 under s. 171 of the Act in respect of assessment proceedings for the year 1969-70 and from as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ive any support from the Gujarat High Court referred to supra. 13. After hearing the parties and going through various documents and evidence placed before us which can be briefly stated as follows: (a) Copies of entries in the HUF books of Shri Sohan Lal on 14th March, 1968; (b) Copy of memorandum of partial partition dt. 14th March, 1968. (c) Copy of the order under s. 171 dt. 11th March, 1971 by the ITO for the asst. yr. 1968-69. (d) Copies of the assessments of Shri Sohan Lal Kamla Vati and Anil Kumar for the asst. yr. 1968-69 to 1973-74. We entertain no doubt that the memorandum of partial partition seen in the context of the conduct of the parties was an arrangement by which individuals overriding titles were created o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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