1987 (10) TMI 26

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....Respondents: L.K. Sood, Adv. JUDGMENT D. S. TEWATIA J. 1. The Appellate Tribunal referred the following question of law for the opinion of this court: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the books of account of the firm in which the assessee is a partner should be considered to be the assessee's own books ....

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.... section 68 of the Income-tax Act. 4. On appeal, the Appellate Assistant Commissioner accepted the explanation of the assessee which had been disbelieved and rejected by the Income-tax Officer and deleted the said income as from undisclosed sources from the taxable amount. The Tribunal, on appeal, however, accepted the explanation of the assessee only regarding Rs. 30,000 and did not accept the....

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....partners is not in dispute. The primary question that falls for consideration in this reference is as to "whether the books of accounts of the partnership firm have to be treated as those of the individual partner also?" 7. At this stage, it would be appropriate to take notice of the two relevant provisions of sections 68 and 69 of the Income-tax Act, which are in the following terms: ....

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...., the value of the investments may be deemed to be the income of the assessee of such financial year." 8. It is not in dispute that in case the books of account of the partnership firm are not to be treated as those of the individual partner, then the amount of Rs. 8,400 which represents alleged undisclosed income, could not be brought to tax along with the income of the assessee for the assess....