1967 (10) TMI 73

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....ided family of which Shri M. D. Dhanwatey is the karta. The assessment year involved in this appeal is 1954-55, the corresponding accounting year being the year ended September 30, 1953. Shri M.D. Dhanwatey was a partner in the partnership firm carrying on business under the name and style of M/s. Shivraj Fine Art Litho Works. The share capital of Shri M.D. Dhanwatey was entirely contributed by the assessee Hindu undivided family. The rights of the partners were governed at the relevant time by a partnership agreement dated April 1, 1951. According to the agreement the partnership was of lithography and art printing and was carried on by means of a press under the name and style of "Shivraj Fine Art Litho Works". Clause (4) of the partnersh....

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....turn. It was contended that the salary received by Shri M.D. Dhanwatey, the karta of the assessee-family was received by him in his individual capacity and that it was not taxable in the hands of the assessee. The Income-tax Officer, Special Investigation Circle "B", Nagpur, by his assessment order dated May 28, 1955, negatived the contention of the assessee. The assessee took the matter to the Appellate Assistant Commissioner but the appeal was dismissed. The assessee preferred a further appeal to the Appellate Tribunal which rejected the contention of the assessee that the amount of Rs. 7,500 was earned by Shri M.D. Dhanwatey in his individual capacity and that it should not have been included in the taxable income of the assessee. As dir....