1970 (4) TMI 13

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.... 1957-58, the Income-tax Officer rejected the claim of the firm to set off loss from certain speculative transactions aggregating to Rs. 22,234 and computed the income of the firm at Rs. 26,365. The Income-tax Officer was of the opinion that since the capital contributed by the partners and the minors who were admitted to the benefits of the partnership was out of the capital of the respective Hindu undivided families to which they belonged, the profits allocated to the partners and to the minors were liable to be assessed in the hands of the respective Hindu undivided families to which the belonged. The order passed by the Income-tax Officer was confirmed in a revision application by the Commissioner. The firm then moved a petition unde....

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....e 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 each partner of the firm, including therein his share of its income, profits and gains of the previous year, shall be assessed and the sum payable by him on the basis of such assessment shall be determined :. . . . (6) Whenever the Income-tax Officer makes a determination in accordance with the provisions of sub-section (5), he shall notify to the firm by an order in writing the amount of the total income on which the determination has been based and the apportionment thereof between the several pa....