https://www.taxtmi.com/caselaws?id=66744 The decisive test for treating two firms as one business for income-tax purposes is real inter-connection, inter-lacing, inter-dependence, or unity of control. Mere identity of partners is insufficient where the firms maintain separate accounts, operate from different premises, have no common fund, and show no material flow of finance between them. Small reciprocal transactions on normal commercial terms, token withdrawals by partners, and shared contact details do not by themselves establish capital intermixture or common management. On these facts, the firms were treated as distinct and separate, and aggregation of the new firm's income with the assessee-firm's income was not justified. en-us Fri, 10 Apr 1981 00:00:00 +0530 Mon, 07 Mar 2011 10:33:45 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=66744 The decisive test for treating two firms as one business for income-tax purposes is real inter-connection, inter-lacing, inter-dependence, or unity of control. Mere identity of partners is insufficient where the firms maintain separate accounts, operate from different premises, have no common fund, and show no material flow of finance between them. Small reciprocal transactions on normal commercial terms, token withdrawals by partners, and shared contact details do not by themselves establish capital intermixture or common management. On these facts, the firms were treated as distinct and separate, and aggregation of the new firm's income with the assessee-firm's income was not justified. Case-Laws Income Tax Fri, 10 Apr 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=66744