Commissioner of Income Tax vs Vimal Kumar and Nirmal Kumar Soorana

On an application filed u/s 256(1) of the Income Tax Act, 1961, the Tribunal has referred the following questions for our opinion :

"1. Whether on the facts and in the circumstances of the case, the Tribunal was justified in holding that M/s. Mannalal Nirmal Kumar Soorana & Co. was an independent, separate and distinct firm and that the assessee was a partner in that firm as a representative of his Hindu undivided family?

Whether the Tribunal was justified in upholding the directions of the Commissioner (Appeals) to exclude the share income earned by the assessee-firm M/s. Mannalal Nirmal Kumar & Company?"

At the outset, learned counsel for the revenue fairly admits that the similar issues have been considered by this court in CIT v. Hazarimal Milapchand Surana (P.B. IT Reference No. 11 of 1985), wherein the questions have been answered in affirmative, i.e., in favour of the assessee and against the revenue.

Following our order in Hazarimal Milapchand Surana''s case (supra), we answer both the questions in affirmative, i.e., in favour of the assessee and against the revenue.

Reference so made stands disposed of accordingly.