1938 (1) TMI 23

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....matter of an assessment made upon a joint family in respect of a business carried on by them. The material facts may be very shortly stated. The family are the descendants of one Chaturbhuj who left two sons. The eldest son left three sons the eldest of whom was one Nemchand. From the younger son was descended one Bhuramal who had, in turn, two sons Sohan Lal and Puranchand. During the year of ass....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....and the business continued in the hands of the other members of the family. Now, the first question of the Commissioner which we have to answer is whether in the circumstances of this case that assessment was rightly made on the basis of a Hindu undivided family. This question in part depends upon whether the business was the same business after as before the elimination of Nemchand or whether it....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ent in respect of the tax payable for that year; but the department has charged them, very reasonably only with the tax for the period after disappearance of Nemchand. With this question, however, we are not concerned. The second question submitted to us relates simply to one item of the accounts. It would seem that some few years ago one Nasiruddin Ahmad became indebted to the assessees' bus....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... is inconsistent. After all the department should treat a continuing business with a continuing and consistent system of treatment of items of account and the principles which are applicable to such an item of account and such a method of treatment of accounts in a consistent manner are explained in the case of Bansidhar v. Commissioner of Income-tax, Bihar and Orissa [1934] ILR 13 Patna 101, the ....