TaxTMI 
TaxTMI 
1981 (8) TMI 109
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....es against the respondent in the status of unregistered firms and thus allowing the appeals. The issue which is common to all the four appeals is whether the respondents were assessable at all in the status of unregistered firm. The AAC for deciding the four appeals has referred to the facts in the case of M/s. Nohar Chand Kamalawati & Sons only in Appeal No. 26-IT/SNG/1979-80 and making that order as the basis has decided the other three appeals also. For the purpose of bearing the appeals before us also, the facts in the case of M/s. Nohar Chand Kamlawati & Ors. in ITA No. 379 have been agreed as typical and, therefore, constituting the necessary basis for deciding all these revenue appeals. 2. The dispute as stated above which has com....
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....e family was taken over by the erstwhile members. For the asst. yr. 1969-70 to 1973-74, the assessments of Nohar Chand and other members of the family were framed on the basis that the members had overriding title in the share interest of Nohar Chand in the firm M/s. Swarup Chand Hans Raj. In the asst. yr. 1974-75, the ITO for the first time departed from such position and raised assessment on Nohar Chand Kamalawati & Sons and the other respondents as URFs on the ground that a sub-partnership came into existence between the various members after the partial partition on 1st April, 1968 and there was no overriding title by virtue of which the incomes derived by Nohar Chand from the aforesaid firm were assessable directly in the hands of the ....
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....e authorities on which reliance was placed by the assessee's representative and in particular the Punjab and Haryana High Court Judgment in the case of Dalmia Dadri Cement Ltd. Holding that there was absolutely no case for the Revenue for issuing any notice to the entity which the ITO termed as sub-partnership firm in the name of M/s. Nohar Chand Kamalawati & Sons much less any justification for framing any assessment we cancel the assessments. The AAC in our view was not justified in upholding the ITO's action. 3. The ITO having reported the performance for the asst. yr. 1975-76 the respondents filed appeal before the first appellate authority who relying on the Tribunal's order in the assessee's own case for the asst. yr. 1974-75 and a....
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.... strongly relied on the judgment of Gujarat high Court and in the case of CIT vs. Mohinder Singh Mohan Singh (1979) 12 CTR (Guj) 172 : (1980) 123 ITR 938 (Guj) but the said judgment is clearly distinguishable on facts as much as in that case there was separate written agreement to share the profit share which feature is conspicuous by its absence in the cases before us. It was, however, on contended the absence of a separate agreement did not matter such as the intention of the parties by their conduct appeared to be constituting a sub-partnership and therefore, the action of the ITO was fuly justified and the AAC misdirected herself in accepting the assessee's appeal. 5. For the respondent Shri G.K. Sood, Advocate, strongly reacting to ....
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....he firm. The AAC held that shares of all the members could not be clubbed and assessed in the status of AOPs. The Tribunal in appeal held that the proper status of each members for the purpose of assessment was that of an individual and that no sub-partnership came into existence in regard to the share income from the firm. 6. The facts of the case before us are in pari materia with the facts in the case of Ram Narain and as such were are duly bound to follow this judgment. We also like to refer to a judgment of the Allahabad High Court in the case of CIT vs. Laxmicant Gupta cited as 1978 CTR (All) 132. Though this judgment has not been cited at the Bar, this is to emphasis that the terms of the memorandum of partial partition are very i....