Section 84 relief for partner's share income allowed despite firm-level deduction under the earlier Income-tax Act scheme.

Section 84 relief was available on a partner's share of firm income from an industrial undertaking even though the firm had already obtained the benefit, because the relevant version of the Act contained no prohibition against such concurrent relief. The later insertion of section 80A(3) was treated as a subsequent change aimed at preventing double deduction, supporting the view that the earlier scheme did not bar relief at both levels. The assessee was therefore entitled to the deduction on distributive share income.

---

---

Issues: Whether a partner is entitled to relief under section 84 of the Income-tax Act, 1961 in respect of his share of income from a firm when the firm has already been granted the same relief on the profits of the industrial undertaking.

Analysis: The question turned on the construction of section 84 as it stood for the relevant assessment years. The Court noted that the provision had been understood by other High Courts to permit the relief both at the level of the firm and at the level of the partner receiving distributive share income. The later introduction of section 80A(3) was noticed as a subsequent statutory change specifically aimed at preventing a double deduction, which indicated that such a prohibition was not found in the earlier scheme governing the case.

Conclusion: The assessee was entitled to relief under section 84 notwithstanding that the firm had already obtained the benefit, and the answer to the referred question was in favour of the assessee.

Ratio Decidendi: In the absence of a statutory prohibition in the relevant version of the Act, relief under section 84 could be allowed both to the firm and to the partner on the partner's share of income from the industrial undertaking.

---