Law:

Section:

Section 2(m) read with section 27 of the Wealth-tax Act, 1957 - Net wealth - Debt owed - Assessment years 1965-66 and 1966-67 - A partnership was constituted between one J and a trust in which assessees were trustees - By virtue of dissolution deed, said partnership stood dissolved - Under said dissolution deed, trust was to get certain amount from J - Subsequently, assessees and 'J' executed fresh partnership deed under which new firm also undertook to pay J's liabilities to trust created under said dissolution deed - 'J' retired from firm leaving behind three assessees alone as partners of said firm - Assessees claimed that their share of liability of firm to said trust was deductible - Tribunal allowed claim of assessees - Whether in order to claim liability in question, it had to be shown that all partners of new firm in their capacity as partners had agreed to discharge liability of J to trust and that trust had agreed to treat new firm as its debtor in place of J - Held, yes - Whether question whether said liability was deductible in computation of net wealth of assessees could not be answered in absence of finding by Tribunal as to whether or not trust had agreed to accept new firm as its debtor in place of 'J' - Held, yes FACTS The three assessees, all brothers, representing their respective HUF were partners in firm along with one J. By means of a trust deed a trust was created and the assessees were designated its trustees. Subsequently, the assessees withdrew from the firm and assigned a certain sum each to the said trust. Thereafter, a partnership agreement was entered into between J and the trust for running the business. The trust contributed the amount assigned to it by the assessees towards the capital of the partnership. That firm stood dissolved by virtue of a deed of dissolution dated 10-1-1949. According to the said deed of dissolution the trust was to get a sum from 'J' and all assets, credits and effects of the firm were to be held by 'J'. Subsequently, the assessees and J again executed a fresh partnership deed on 25-2-1949 and agreed to carry on the business. According to the assessees, the new firm also undertook to pay J's liabilities…

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