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Section 4 of the Income-tax Act, 1961 - Income - Assessable as - Assessment years 1967-68 and 1968-69 - Assessee in his return disclosed total income derived from business of a firm as his exclusive income but before assessment was completed assessee filed revised return claiming that aforesaid business was carried on by a partnership firm wherein he. had 50 per cent share and, therefore, only 50 per cent of income was assessable - Whether since aforesaid partnership firm was granted registration, only 50 per cent of its income was assessable in hands of assessee - Held, yes FACTS For the assessment years 1967-68 and 1968-69, the assessee in his returns disclosed the total income derived from the business of a firm as his exclusive income but before the assessment was completed, he filed revised return claiming that the aforesaid business was carried on by a partnership firm wherein he had 50 per cent share and, therefore, 50 per cent of the income arising from the aforesaid business alone should be included in his income. The ITO, however, refused to accede to the aforesaid plea and included the entire income from the aforesaid business in his individual assessment of the assessee. On appeal, the AAC held that inasmuch as registration was granted to the aforesaid firm, the assessee's share must be only half in the income arising from the aforesaid firm. On appeal by the revenue the Tribunal upheld the order of the AAC. On reference: HELD In the instant case the assessment relating to grant of registration to the firm had become final. Indeed a reference arising in that behalf had been answered by holding that the order refusing to condone the delay in filing the application for registration of the firm was an appealable order. Therefore, the Tribunal was justified in holding that only 50 per cent of income from the business of the aforesaid firm was to be included in the assessee's income. CASE REFERRED TO CIT v. Moradabad Gun House [IT Reference No. 151 of 1979] JUDGMENT Reddy, CJ.- Under section 256(2) of the Income-tax Act, 1961 the following question has been stated by the Tribunal, Delhi Bench 'A', New Delhi: "Whether, on the facts and in the…

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