TaxTMI 
TaxTMI 
1977 (9) TMI 20
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.... the circumstances of the case, the Appellate Tribunal is justified in holding that the share income arising from the partnership firm is the income of the joint family?" The facts leading to the filing of the applications under section 256(2) of the Act are these: The assessee is a partner in Messrs. Hyderabad Gas Company, Hyderabad. The income derived by the assessee from the partnership firm as also the capital standing to his credit were being treated by the Income-tax Officer as belonging to him as "individual" and assessments were accordingly made. On December 31, 1969, the assessee abandoned his rights in the partnership firm both with regard to the capital put in by him as also the profits arising therefrom and threw the same into ....
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....ed with the properties of the Hindu undivided family. According to the learned counsel, the assessee cannot make a declaration whereby the joint family would be burdened with the risk and liability of the business of the partnership firm. It is contended that the assessee by throwing his interest in the Hindu undivided family cannot burden the joint family with losses and other liabilities and, therefore, the Tribunal was in error in not treating the income realised by the assessee from the partnership firm of which he was a member as assessable in his hands as an individual. The main question to be considered is whether it is open to an assessee who happens to be the karta or a member of the Hindu undivided family to throw his interest in....