Recovery of firm tax from an alleged partner fails without a finding proving partnership status.

Tax assessed on a firm could not be recovered from an individual as a partner unless there was a finding establishing that he was in fact a partner. The assessment had been remanded for inquiry into the petitioner's status, but the assessing authority completed it without recording any such finding. As liability to recover firm tax from a person depends on proof of partnership, the department could not proceed against him on that footing. The recovery certificate was therefore unsustainable and was quashed.

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Issues: Whether tax assessed on a firm could be recovered from the petitioner as a partner without any finding that he was in fact a partner in the firm.

Analysis: The assessment proceedings had been remanded for investigation into the petitioner's status as a partner. The assessing authority nevertheless completed the assessment without recording any finding on that question. Liability to recover the firm's tax from an individual on the footing that he is a partner necessarily depends on a finding establishing that status. In the absence of such a finding, the department could not proceed against the petitioner as a partner.

Conclusion: The recovery certificate against the petitioner could not be sustained and was quashed.

Ratio Decidendi: Recovery of tax assessed on a firm from an individual as a partner is impermissible unless there is a finding establishing that he is a partner in the firm.

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