| Case ID |
00f8970a-19ab-4cf9-880e-8243bb8ba59d |
| Body |
View case body. Login to View |
| Case Number |
CIVIL APPEAL Nos. 163 TO 165 OF 1959 |
| Decision Date |
Nov 01, 1960 |
| Hearing Date |
|
| Decision |
The Supreme Court held that the inference drawn by the Tribunal regarding the genuineness of the partnership was unreasonable and unjustified. The court concluded that there was no material evidence to support the Tribunal's finding that the partnership was not genuine. It was directed that the Tribunal be required to state a case on the question of law and refer it to the High Court. The decision was made in favor of the assessee, Krishna Flour Mills, which emphasized the legitimacy of involving family members in business partnerships. |
| Summary |
The case of Krishna Flour Mills v. Commissioner of Income Tax highlights critical issues surrounding the genuineness of partnership firms, particularly involving family members. The Supreme Court of India examined the implications of familial relationships in business partnerships, emphasizing that such partnerships should not be deemed suspect solely based on the relationships between partners. The court found that the Tribunal's conclusions were based on unreasonable inferences, rather than concrete evidence, leading to a ruling that favored the taxpayers. This case is pivotal for understanding partnership law and the principles of taxation, especially in the context of family-run businesses. Keywords such as 'partnership law', 'income tax', 'Supreme Court', and 'family business' are relevant for SEO optimization and are trending in legal discussions. |
| Court |
Supreme Court of India
|
| Entities Involved |
Not available
|
| Judges |
S.K. Das,
M. Hidayatullah,
J.C. Shah
|
| Lawyers |
A.V. Viswanatha Sastri,
R. Ganapathy Iyer,
G. Gopalakrishnan,
K.N. Rajagopal Sastri,
R.H. Dhebar,
D. Gupta
|
| Petitioners |
Krishna Flour Mills
|
| Respondents |
Commissioner of Income tax
|
| Citations |
1962 SLD 326,
(1962) 44 ITR 501
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
185,
256,
26A
|