| Case ID |
22f33817-f801-464a-937b-12e2962015b8 |
| Body |
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| Case Number |
D-2741 of 2016 |
| Decision Date |
Jan 01, 1989 |
| Hearing Date |
Jan 01, 1989 |
| Decision |
The court held that immovable properties belonging to the firm where the assessee was a partner and used in the business of another concern should be excluded for the purpose of levying additional wealth-tax. It was determined that the business carried on by the firm is also considered the business of the partner, and the profits earned from the firm should be treated as business income. The Tribunal's decision to uphold the AAC's order was affirmed, emphasizing that the interpretation of the relevant sections of the Wealth-tax Act and Income-tax Act supports this conclusion. |
| Summary |
This case revolves around the interpretation of the Wealth-tax Act, 1957, particularly the chargeability of additional wealth-tax for assessment years 1971-72 to 1976-77. The case involves a partner in a firm who contested the levy of additional wealth-tax on immovable properties used for business. The court affirmed the principle that the business of a firm is considered the business of its partners, thereby excluding certain assets from additional wealth-tax. The judgment highlights the importance of understanding the relationship between partners and the firm in tax assessments, making it a significant case in tax law. Keywords include Wealth-tax, Income-tax, business income, tax assessment, and partnership. |
| Court |
Karnataka High Court
|
| Entities Involved |
Not available
|
| Judges |
S.A. Hakeem,
S. Rajendra Babu
|
| Lawyers |
K. Srinivasan,
H. Raghavendra Rao,
G. Sarangan
|
| Petitioners |
Commissioner of Wealth Tax
|
| Respondents |
R. Susheela
|
| Citations |
1989 SLD 2196,
(1989) 176 ITR 232
|
| Other Citations |
CIT v. K.N. Guruswamy [1984] 146 ITR 34/ 17 Taxman 287 (Kar.),
CIT v. Ramniklal Kothari [1969] 74 ITR 57 (SC),
CIT v. Rasiklal Balabhai [1979] 119 ITR 303 (Guj.)
|
| Laws Involved |
Wealth-tax Act, 1957,
Indian Income-tax Act, 1922
|
| Sections |
Part I(2), Para A,
10(1)
|