2004 (10) TMI 55

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....sment year 1983-84: "(i) Whether, on the facts and circumstances of the case, the Income-tax Appellate Tribunal has rightly interpreted clause 4 of the agreement dated June 24, 1982? (ii) Whether, on the facts and circumstances of the case, the Income-tax Appellate Tribunal has justifiably on facts and in law vacated the order of the learned first appellate authority and restored that of the learned Income-tax Officer?" The backdrop of the case giving rise to the above questions of law in brief is that a firm in the name and style of M/s. Special Steel Components Corporation was brought into existence on May 29,1979, consisting of the following partners: (a) N. K. Gupta s/o Shri S.L. Gupta, (b) S. L. Gupta s/o Shri Late Sukh ....

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....n fact, the agreement means the sharing of profits by Shri Ashok Kumar Goyal without being a partner. This has been done with a view to reduce the profits and hence, tax liability. I, therefore, hold that Shri Ashok Kumar remained a benami partner in the firm as evidenced from the agreement. The profits have also not been distributed amongst the partners in accordance with the terms of the Partnership Act. I, therefore, hold that the firm was not genuinely constituted and refuse registration to the firm for the assessment year 1983-84." Aggrieved by the order of the Assessing Officer, the assessee preferred an appeal to the Commissioner of Income-tax (Appeals), Ambala Range, Ambala, which was accepted. However, the said decision was reve....

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.... is a finding of fact and the findings recorded by the Tribunal should not be interfered with by the High Court in its advisory jurisdiction. We have considered the submissions of learned counsel for the parties and perused the paper book. The Tribunal after appraising the entire material on record, has recorded a finding of fact that the arrangement between the four partners and Shri Ashok Kumar Goyal was sham and was not real and the same has been entered into with a view to reduce the incidence of taxation by diverting the profits of the partnership firm and was not for the purpose as mentioned in the agreement. Learned counsel for the assessee has not been able to pinpoint any error or misreading of evidence on the basis of which he ....