TaxTMI 
TaxTMI 
1978 (2) TMI 189
X X X X Extracts X X X X
X X X X Extracts X X X X
.... two tax revision cases raise the question as to whether the same set of partners constituting two different firms or partnerships can, in the eye of law, be regarded as one person, or should be treated as two separate assessable units or entities for the purposes of the General Sales Tax Act, 1963. The Appellate Tribunal took the view that the turnover from sales by one of the partnerships had no....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s for purposes of sales tax. Counsel for the revenue placed reliance on the decision of the Punjab and Haryana High Court in R.N. Oswal Hosiery & Mahabir Woollen Mills v. Commissioner of Income-tax, Punjab[1968] 70 I.T.R. 843.. That has surveyed the development of the law in regard to this aspect of the matter beginning from the early dictum in the decision of a Division Bench of the Bombay High C....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ata Narasimha Rao & Co.[1976] 104 I.T.R. 28. There is a recent decision of the Supreme Court in Commissioner of Income-tax, Madras v. R.M. Chidambaram Pillai[1977] 106 I.T.R. 292 (S.C.)., which takes the view that a firm is not a legal person even though it has some attributes of legal personality. In income-tax law a firm is a unit of assessment, by special provisions, but not a full legal person....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Punjab v. Jullundur Vegetables Syndicate[1966] 17 S.T.C. 326 (S.C.). There a three-judge Court speaking through Subba Rao, J., ruled that although in the partnership law a firm is not a legal entity but in law consists of only persons who are partners for the time being, as far as tax law, both income-tax and sales tax, is concerned, it is a legal entity. The principle was stated in clear terms on....