Allahabad Court September 1979 Judgments

Commissioner of Income-tax Vs. Madan Lal Bhargava

Court: Allahabad

Reported in: [1980]122ITR545(All)

C.S.P. Singh, J.1. The Tribunal has referred the following question for opinion of this court:' Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the amount of Rs. 11,250 received by the assessee from M/s. G.W. Lawrie and Co. was not liable to tax '2. The assessee was a partner in a firm, M/s. G. W. Lawrie & Co. Madan Lal Bhargava, the assessee, and two others, Kishan Lal Bhargava and Vishwanath Bhargava, who were three out of the six partners withdrew from the firm with effect from 30th June, 1969, by an agreement dated July 1, 1969. The reason for their withdrawing, from their firm was that differences and disputes had arisen between the partners, which was standing in the way of effective running of the business. However, as it was not feasible to dissolve the firm owing to its business commitments and involvements, the three partners decided to retire. Under para. 4, of the retirement deed, the partners were allowed to withdraw the...