Law: Income Tax Act, 1961

Section: 256,256(2)

(a) Income-tax----Reference---Firm---Registration---Whether or not firm genuine. and whether or not formed as device to evade tax---Finding of fact---No question of law arises---Indian Income Tax Act, 1961, S.256. Where the Tribunal found on the facts, inter alia, that the Assessing Officer had made no enquiry about the genuineness of the firm nor given any finding thereon in the order passed, that with the dissolution of the association of persons all its assets and liabilities were taken over by the assessee-firm and the capital of the members of the association of persons was brought into the firm by the partners constituting the firm, that the business as carried on thereafter was not as per terms of the indenture of the association of persons, but as per terms of the partnership deed, that at the close of the year the profit was divided not as per the share ratio provided in the association of persons deed but it was divided as per the share ratio provided in the partnership deed, that the firm as constituted on May 1, 1985, continued till today and that the dissolution of the association of persons and the constitution of the firm was for bona fide reasons and no scheming was involved with the object of evading tax: Held, that a finding as to the existence of the firm as genuine and not as a device for the purpose of avoidance of tax or a part of a scheme, was purely a finding of fact and could not be said to give rise to any question of law nor could it be said, even prima facie, from the material which had gone into consideration before the Tribunal, that it could give rise to a question of law as to the perversity of the finding of fact. (b) Income-tax--- ----Reference---Same business on separate business---Whether or not two concerns interdependent for purpose of clubbing income---Finding of fact--­No question of law arises---Indian Income Tax Act, 1961, S.256. Where the Tribunal found that the capital acquisition by the independent, entities was genuine and was not disputed by the Revenue at any stage, and that the assessee-firm maintained complete quantity record of the goods purchased and sold evidenced by audited accounts, though the associate…

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