1976 (7) TMI 25

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e assessment year 1962-63 ?" The assessee is a registered firm carrying on business in cloth at Bareilly. Up to the assessment year 1960-61, the assessment was completed in the status of Hindu undivided family, which consisted of seven members including its karta, Banwari Lal. On March 31, 1960, there was a partial partition of the Hindu undivided family in regard to the business, which was taken over by three members only out of the seven, viz., Banwari Lal, karta, Madan Mohan and Ghan Shyam. It carried on the business in the status of a firm. The balance-sheet of the Hindu undivided family as drawn on March 31, 1960, consisted of a number of assets and liabilities including a credit balance of Rs. 25,230 in respect of provision for sales....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y, and substantially the identity and continuity of the business were preserved. It was held that the sales tax computed was an allowable deduction. When the matter came up before this court, the question arose as to whether the assessee was following the mercantile system of accounting or kept its accounts on the cash system. As the order of the Tribunal was silent on this point, a Division Bench of this court by its order dated December 3, 1973, directed the Tribunal to drawup a supplementary statement of the case containing a finding with regard to the system of accounting with regard to the erstwhile family. The Tribunal has now submitted a supplementary statement of the case and returned a finding that the Hindu undivided family was ad....