1980 (4) TMI 152

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the assessee for the asst. yr. 1975-76. 2. The assessee is a private limited company. The company became a partner in the firm styled as Kohinoor Paint Colour and Varnish Works,Amritsarin terms of a partnership deed dt.1st April, 1974. The share of profits specified in the case of the company was 1/6th only. The assessee has credited to its profit and loss account its share of profit from the f....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....on summarily saying that in his opinion there was no mistake apparent from the record. 3. The assessee appealed to the AAC of IT. It was pointed out that there could not be two opinions about the company being a manufacturing company and, therefore, the tax should have been charged at 55 per cent. It was further pointed out that in the assessment order the ITO did not reveal the rate of tax and....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....facturing concern, the business of the firm has to be deemed to be carried on by the assessee as a partner, on the rationale of the decision of the Madras High Court in CIT, Madras vs. N.C. Sadagopan(1). It was pointed out that in that case the Madras High Court had relied on the decision of the Supreme Court in CIT vs. Ramnikal Kothari(2), holding that in the case of a partnership the business is....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....edings under s. 104 of the ITA, 1961 initiated by the Department were dropped charged @ 55 per cent. The Department Representative relied on the orders of the authorities below and submitted that the point was debatable and consequently the relief claimed by the assessee could not be allowed under s. 154 of the Act. 5. We have considered the submissions of the parties. The proposition of law re....