Law:

Section:

JUDGMENT Ramaprasada Rao, J.-One M. Sadulla Basha along with five others constituted a partnership and were doing business under the name and style of Messrs. Abdul Khalick Sahib & Company. M. Sadulla Basha died on July 22, 1952, leaving behind him, surviving his wife, Hava Bi, and two minor daughters, Habibunnissa and Sanober. On the date when Sadulla Basha died, a sum of Rs. 29,328-11-2 stood to his credit as per the firm's books. But later, certain adjustments were made and such adjustments resulted in the reduction of the credit as above to a sum of Rs. 20,239'78 as on July 31, 1952. The normal presumption, therefore, is that only a sum of Rs. 20,239.78 should be deemed to be the credit in the name of late Sadulla Basha on the date of his death. The surviving partners of the firm entered into an arrangement with the heirs of Sadulla Basha and took them in as partners in the firm, the minors obviously being made partners therein to be entitled to the benefits thereof and thus the firm continued in the same trading name but with a change in the constitution of its partners. It appears that several of the partners in the firm, before reconstitution, retired from time to time, and even the daughter, Habibunnissa, after she became a major, stepped out of the firm. Before the daughters retired, the widow of Sadulla Basha also retired from the firm and thereafter the firm continued with the available partners who are willing to co-ordinate in the enterprise. I am only giving the above details just to show that the original firm continued and what happened was that when the heirs of Sadulla Basha were taken in as partners, the credit of Rs. 20,239.78 which was standing in the name of late Sadulla Basha was divided as between the heirs and was disclosed in the books of the reconstituted partnership firm as share capital of the incoming partners. It is not in dispute that for the years 1950-51, 1951-52 and 1952-53 Sadulla Basha, as partner of the firm, was in arrears of income-tax to the tune of Rs. 69,486-1-0. The revenue, coming to know that there was a cash credit in the books of the firm in the name of late Sadulla Basha, the assessee who was in arrears, gave…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492