1969 (9) TMI 21

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....irdhari Lal. The firm in question was constituted under an indenture made on November 3, 1956. The said partnership deed is on record and indicates that the partnership was started by the assessee and his adult son, Lakshmi Narain Dalmia. The minor sons were admitted to the benefits of the partnership in the firm. Under clause 6 of the partnership deed the parties (the assessee and Lakshmi Narain Dalmia) were entitled to the profits earned and had to contribute to the losses sustained by the firm in accordance with their respective shares which were 1/5th share each. Clause 7 of the partnership deed provided that the three minors were admitted to the benefits of partnership in the firm and their respective shares were also 4/5th share each ....

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.... Commissioner on the ground that it had refused to allow him to agitate the plea constituting the capacity in which the assessee was assessed. The department's appeal was allowed and the assessee's appeal was dismissed by the Income-tax Appellate Tribunal, by its consolidated order dated March 17, 1962. The assessee applied to the Appellate Tribunal to refer to this court certain questions of law which were said to arise out of the Tribunal's order dated March 17, 1962. So far as the request for referring the question as to whether the Appellate Assistant Commissioner was justified in not admitting the additional ground of objection raised before him is concerned, it was rejected by the Tribunal and no reference was made on that quest....

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.... minors on the amount standing to their credit in the firm could not be included in the total income of the assessee under section 16(3)(a)(ii). It will be noticed that in the Bombay case there was no finding of fact reached by the Income-tax Appellate Tribunal to the effect that the interest was paid on capital invested and not on a loan or deposit. In the instant case, the Income-tax Appellate Tribunal had recorded a categorical finding that all the partners of the firm were originally members of a Hindu undivided family, that after effecting a partial partition of their business capital, they had formed a partnership in respect of the erstwhile Hindu undivided family business assets and the business assets were agreed to be retained i....