TaxTMI 
TaxTMI 
1981 (1) TMI 122
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....shares of the assessee from the firm of the year under consideration came to Rs. 28,474. 80. The case of the assessee before the ITO was that the said share income was the income of the partners of M/s Sangathan Weekly and not his individual income. This plea of the assessee has been negatived by the WTO, who has added the entire determined share of the assessee in M/s Modern Construction Co. of Rs. 33,740 to his total income for the year. 3. Aggrieved by the said addition, the assessee brought the matter by way of appeal before the AAC of IT, Spl. Range, Kanpur who has upheld the above view of the ITO by observing as under: "Firstly the natural course of events should be believed. If there was an agreement between the partners of M/s. ....
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.... assessed in his hands by the ITO." 4. We have heard both the ld. counsel for the assessee Sri, B.L. Sharma and the Deptl. Rep. The ld. Counsel for the assessee has taken us through partnership Deed witnessing the firm styled as M/s Sangathan Weekly dt. 11th March, 1969. Cl. 3 thereof permits the partners to add any other business to their respective present trade by mutual consent of the partners. He next took us through agreement amongst all the partners of M/s. Snagathan Weekly dt. 1st April 1972, whereby the assessee Bhagwan Das was to enter into agreement of partnership with two others in respect of the business to be carried on under the name and style of M/s. Modern Construction Co., and that the assessee was to be there in the sai....
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....rtners of M/s Sangathan Weekly dt. 1st April, 1972. The said document is not shown to be bogus or vague. The genuineness of this document cannot be doubted. Once that is accepted, it is clear, as agreed to therein that the assessee was to enter into partnership agreement with two others to carry on the business under the name and style of M/s. Modern Construction Co. and that he was to be the partner therein in his representative capacity representing himself and three other partners of M/s. Sangathan Weekly. The capital required by the assessee as a partner of M/s. Modern Construction Co. was to be provided by the firm M/s. Sangathan Weekly and the said capital was provided, though sometime it was shown in the books of M/s. Sangthan Weekly....