1986 (9) TMI 12

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....Y. V. ANJANEYULU J.-These applications filed under section 256(2) of the Income-tax Act, 1961, relate to the same assessee but for different assessment years. The Revenue is aggrieved by the refusal by the Income-tax Appellate Tribunal, Hyderabad, to refer the following question of law to this court : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justi....

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....e firms are the same. The only ground on which the Revenue canvasses the plea that both the firms must be treated as one indivisible firm is that monies were advanced by one of the firms to the other firm for the construction of a cinema theatre to facilitate the exhibition of cinema films. Based on the advances made by one of the partnership firms to the other partnership firm, the Revenue draws ....

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....t there are two partnership firms and not one constituted by the same persons and carrying on different businesses, the assessing authority must test the claim in the light of the partnership law.It is only after that question has been first determined, namely, whether in law there is only one partnership firm or two partnership firms, that the next question relating to assessability under the tax....

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....y endeavour was made to examine whether the two partnership firms could be considered to have been validly constituted under the Partnership Act or not. Apparently, the conclusion regarding the assessability of the income relating to the two partnership firms in the hands of one single partnership firm was reached with reference to the tax law. The Tribunal examined the question from the point of ....