| Case ID |
3cca14c7-49cc-4b74-b7a4-6216d30c66f3 |
| Body |
View case body. Login to View |
| Case Number |
|
| Decision Date |
|
| Hearing Date |
|
| Decision |
The court held that the income derived from the firm Batli Munavalli & Co. is assessable in the hands of the assessee-firm. The partner of the assessee-firm, who became a partner in another firm, was acting on behalf of the assessee. The law requires that the total income of the firm be assessed and then apportioned to the partners, regardless of whether the share income had already been taxed in the other firm. Therefore, the Tribunal was justified in rejecting the claim of the assessee regarding double taxation. |
| Summary |
This case revolves around the assessability of income from a partnership where one partner is also involved in another firm. The Karnataka High Court addressed the issue under Section 4 of the Income-tax Act, 1961, determining that a partner representing the firm in another partnership does not exempt the income from assessment. The court emphasized the importance of assessing the total income of the firm and apportioning it to the partners, irrespective of prior taxation in another firm. The ruling clarifies the legal framework regarding partnership income and double taxation, establishing a precedent for future cases involving similar circumstances. Keywords: Income Tax Act, partnership income, assessability, double taxation, Karnataka High Court. |
| Court |
Karnataka High Court
|
| Entities Involved |
Not available
|
| Judges |
K. Jagannatha Shetty,
S.A. Hakeem
|
| Lawyers |
K.R. Prasad,
K. Ramanjuln,
K. Srinivasan,
H. Raghavendra Rao
|
| Petitioners |
I.P. Munavalli & Sons
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1987 SLD 2833 = (1987) 163 ITR 744
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
4
|