Kolkata Court December 1967 Judgments

Giridharilal Ghasiram Vs. Commissioner of Income-tax, West Bengal.

Court: Kolkata

Reported in: [1968]69ITR890(Cal)

BANERJEE J. - This reference, under section 66(1) of the Indian Income-tax Act, 1922, has been made in circumstances hereinafter related.The assessee, Messrs. Giridharilal Ghasiram, is a registered firm. The firm was constituted under an instrument of partnership, dated January 21, 1954. In terms of the partnership, on Prahladrai Mahwar became a partner in the firm in his representative capacity, as karta of Hindu undivided family known as Messrs. Prahladrai Mahwar. The share of Prahldrai Mahwar in the partnership admittedly was Re. 0-2-1 1/2 pies. Before Prahladrai became a partner of the assessee-firm, he had been rendering services to the Delhi Branch of the partnership and was earning a remuneration. After he became a partner in the assessee firm, he continued to render services to the firm and earn remuneration therefor.For the assessment year 1957-58, the remuneration paid to Prahladrai amounted to Rs. 8,500 and for the assessment year 1958-59 the remuneration amounted to Rs. 9,0...