TaxTMI 
TaxTMI 
1998 (7) TMI 30
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....bunal was right in law in holding that the status of the assessee is only body of individuals ?" One Taharally Sarafally was a partner of Abbasbhoy Taharally and Co., having a 1/3rd share therein. On his death on April 26, 1951, a fresh partnership deed was executed and Begum Sakina Bai wife of Taharally Sarafally was taken in as a partner in the place of her deceased husband and was given her deceased husband's 1/3rd share in the partnership. At the time of the death of Taharally Sarafally, he had also left behind him two sons and three daughters besides his widow and all the children were minors. When the sons and daughters of Taharally Sarafally attained majority on April 15, 1963, they entered into an agreement with reference to the ....
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.... the status of unregistered firm and another in the status of body of individuals. The Appellate Assistant Commissioner in the appeal held that the action under section 148 has been validly taken. In a separate proceeding this court held that the assessment in the status of unregistered firm was untenable as the agreement between the widow and her children did not constitute a sub-partnership. The order of the Assessing Officer on the assessment in the status of body of individuals was confirmed for all the assessment years. This was confirmed by the Tribunal. On that the assessee has come forward with this reference. Counsel for the assessee submitted that the reopening of the assessment is not valid. The Income-tax Officer had found th....
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.... husband and she was entitled to the share of her deceased husband in the partnership firm and she did so representing the heirs of Taharally Sarafally and that the amounts in the capital and current accounts standing to the credit of Begum Sakina Bai in the firm of Abbasbhoy Taharally and Co., belonged always to the heirs in their definite and ascertained shares under the personal law that Begum Sakina Bai was entitled to a one-eighth share and that the two sons were each entitled to a 1/4th share and the three daughters were each entitled to a 7/56ths share therein and that the amounts standing to the credit of Begum Sakina Bai in the books of Abbasbhoy Taharally and Co., were paid by the firm that amount shall be distributed and divided ....
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....a wide interpretation to include a combination of individuals who had unity of interest and were actively engaged in the business carried on for the benefit of all of them by one of them and that, therefore, the widow and her children would constitute a 'body of individuals', rejecting the contention that as guardian-trustee of the minor children, the mother should have been assessed as a representative assessee in accordance with the provisions of sections 160, 161 and 166 of the Income-tax Act, 1961. Dismissing the appeals, the court held that the profits that arose out of the business were a result of the business activities carried on jointly by the mother on her own behalf and also on behalf of the minor children. It did not make an....