Partnership share income assessable in karta's individual hands, not HUF, where deed and accounts showed personal capacity.

Share of profit from a partnership firm was assessable in the karta's individual hands where the partnership deed showed his admission as an individual partner and the surrounding accounting entries treated the family loan as the karta's personal account. The firm credited interest through that individual account, and the loan was later repaid by the karta to the family, which supported the conclusion that the income did not belong to the HUF. Accordingly, inclusion of the share income in the HUF assessment was not justified and the income was correctly assessable in the hands of the individual partner.

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Issues: Whether the share of profit from the partnership firm was assessable in the hands of the Hindu undivided family or in the hands of the karta in his individual capacity.

Analysis: The partnership deed showed that the karta had joined the firm in his individual capacity. The loan taken from the family had been brought into the firm's books in the individual account, interest had been credited through the firm, and the loan was later repaid by the karta to the family. On these facts, the inclusion of the share income in the HUF assessment was not justified.

Conclusion: The share of profit was correctly assessable in the hands of the individual partner and not in the hands of the HUF.

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