1970 (4) TMI 13
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....d Company is a firm registered under the Indian Income-tax Act, 1922. The partners of the firm were Smt. Shanti Devi and Badri Prasad. Three minors, Pardeep Kumar, Anand Prakash and Rajendra Prasad, were admitted to the benefits of the partnership. In proceedings for assessment of tax for the assessment year 1957-58, the Income-tax Officer rejected the claim of the firm to set off loss from cert....
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....Income-tax Officer erred in directing that the profits allocated to the shares of the partners and to the minors be assessed as the income of the respective Hindu undivided families to which they belonged ; and (ii) that the loss in speculation business should have been set off under section 24(1) of the Income-tax Act against profits from other business. Manchanda J. accepted the first contenti....
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....as they were in force in the year of assessment, read as follows : " (5) Notwithstanding anything contained in the foregoing sub-sections, when the assessee is a firm and the total income of the firm has been assessed under sub-section (1), sub-section (3) or sub-section (4), as the case may be,--- (i) the income-tax payable by the firm itself shall be determined ; (ii) the total income of e....
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....ance with sub-section (6) and the apportionment thereof among the partners. Once the Income-tax Officer has granted registration of the firm, he cannot proceed to inquire whether the share allocated to a partner is beneficially held by some other person or entity. The Income-tax Officer must allocate the profits in accordance with the deed of partnership registered by him and to the persons admitt....