Law:

Section:

Section 66, read with section 86 of the Income-tax Act, 1961 (corresponding to section 16(1)(a) read with sections 14(2) of the Indian Income-tax Act, 1922) - Total income - Assessment years 1950-51 to 1955-56 - Appellant was partner in a firm whose business was being carried on by receivers appointed by Court and its income had been assessed in hands of receivers - Share income of appellant-assessee was added to his personal income for determining rate of taxation - Whether though assessment was being made in his hands of receivers appellant and his co-sharers being assessees in such assessment they were as such entitled to benefit of exemption under section 14(2) of 1922 Act as to obligation under section 16(1)(a) of 1922 Act to effect that part of their income derived from business which was exempted from tax under section 14(2) would still count for computation of total income for purpose of determining rate in terms of section 16(1)(a) - Held, yes FACTS Three persons, 'A', 'B' and 'C', carried on a business 'S' in which, each one of them had 1/3rd share. Disputes and differences having arisen, a suit was instituted and receivers were appointed by the court in respect of the said business. For the different assessment years, the income arising out of the said business was assessed in the hands of the receivers. The assessment order for 1950-51, went to show that the assessees were the receivers of business 'S' and the assessment was made taking the status of the assessees to be that of an association of persons. Such assessment was than final. The ITO in assessing 'A' on his personal income for the relevant assessment years computed his total income by adding his 1/3rd share in the income of the firm, 'S' under section 16(1)(a) of the 1922 Act for the purpose of determining the rate of taxation. It was, however, not in dispute that that part of his income from the business was exempted from taxation under section 14(2) of the 1922 Act. 'A' preferred appeals against such assessments on his personal income limited to the plea that his share in the business income carried on by the receivers could not be added to his personal income for computation of his…

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