Karnataka Court March 1970 Judgments

B.N. Pinto Vs. Commissioner of Income-tax, Mysore

Court: Karnataka

Reported in: [1972]85ITR448(KAR); [1972]85ITR448(Karn)

Govinda Bhat, J. 1. This is a reference under section 256(1) of the Income-tax Act, 1961, made at the instance of the assessee. The question of law referred for our opinion is : 'Whether, on the facts and in the circumstances of the case, and the provisions of the Partnership Act, the sum of Rs. 50,000 was properly assessable in the previous year relevant for the assessment year 1962-63 ?' 2. The material facts as found by the Tribunal so far as they are necessary for the decision of this case are as follows :- The assessee is the widow of one J. B. Pinto who was a partner in five partnership firms. J. B. Pinto died on 8th July, 1958. According to the partnership deeds there of the said five firms, the partnerships were not to be dissolved on the death of any partner but accounts were to be taken as on the date of the death and the legal heirs of the deceased partner were entitled to interest on the amounts due at 5 per cent. per annum. The surviving partners carried on the business of...