| Case ID |
22a37214-f0e5-4156-854a-953c1adeb0b0 |
| Body |
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| Case Number |
IT REFERENCE No. 10 OF 1973 |
| Decision Date |
Oct 10, 1974 |
| Hearing Date |
|
| Decision |
The court held that in the case of an unregistered firm, where the partners of the firm have been subjected to assessment for the same year and same income, the firm cannot be assessed. The Tribunal's decision to set aside the assessments made on the unregistered firm was upheld, emphasizing that one income should not be taxed at the hands of two taxable units to avoid double taxation. The decision favored the assessee, indicating that the assessments on the firm were not valid in law. |
| Summary |
In the landmark case of Hindusthan Mill Stores Supply Co. v. Commissioner of Income tax, the Calcutta High Court addressed significant issues surrounding the taxation of unregistered firms under the Income-tax Act, 1961. The court examined the implications of taxing both the firm and its partners for the same income, emphasizing the principle against double taxation. The ruling clarified that if partners are already assessed individually for their share income, the firm itself cannot be subjected to an additional assessment. The decision highlighted the necessity of adhering to statutory provisions that prevent the same income from being taxed twice, thereby protecting the rights of the assessee. This case serves as a critical reference point for legal practitioners and tax professionals in understanding the nuances of income tax law as it pertains to partnerships and unregistered firms in India. |
| Court |
Calcutta High Court
|
| Entities Involved |
|
| Judges |
Sabyasachi Mukharji,
Pyne
|
| Lawyers |
|
| Petitioners |
Hindusthan Mill Stores Supply Co.
|
| Respondents |
Commissioner of Income tax
|
| Citations |
1979 SLD 723,
(1979) 116 ITR 681
|
| Other Citations |
CIT v. Murlidhar Jhawar and Purna Ginning and Pressing Factory [1966] 60 ITR 95,
ITO v. Bachu Lal Kapoor [1966] 60 ITR 74 (SC),
Girdhari Lal Laxman Prasad v. CIT [1968] 70 ITR 853 (All),
CIT v. P.P. Johny [1969] 73 ITR 459 (Ker)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
184,
26A
|