Skip to content


Commissioner of Income-tax, Kerala Vs. M. S. Sheik Rowther. - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtKerala High Court
Decided On
Case NumberIncome-tax Referred Case No. 20 of 1960
Reported in[1962]46ITR259(Ker)
AppellantCommissioner of Income-tax, Kerala
RespondentM. S. Sheik Rowther.
Excerpt:
- .....case and referred the following question of law for the decision of the high court :'whether the share income of rs. 15,781 is assessable in the hands of the assessee in the assessment year 1958-59 ?'in accordance with section 66(1) of the indian income-tax act.the assessee was a partner in the firm of messrs. t.a. mohammed & co., which was constituted under a deed of partnership dated september 27, 1957. the firms accounts were closed on the 30th of april, 1958. the assessees share of the income from the firm during that period amounted to rs. 15,781. the assessee had other sources of income and has been following the period 1st april to the following 31st march as the period of his 'previous year' and so for the assessment year 1958-59, his accounting period ended on the 31st of.....
Judgment:

GOVINDAN NAIR J. - The Income-tax Appellate Tribunal has drawn up a statement of the case and referred the following question of law for the decision of the High Court :

'Whether the share income of Rs. 15,781 is assessable in the hands of the assessee in the assessment year 1958-59 ?'

in accordance with section 66(1) of the Indian Income-tax Act.

The assessee was a partner in the firm of Messrs. T.A. Mohammed & Co., which was constituted under a deed of partnership dated September 27, 1957. The firms accounts were closed on the 30th of April, 1958. The assessees share of the income from the firm during that period amounted to Rs. 15,781. The assessee had other sources of income and has been following the period 1st April to the following 31st March as the period of his 'previous year' and so for the assessment year 1958-59, his accounting period ended on the 31st of March, 1958.

The Income-tax Officer and the Appellate Assistant Commissioner felt compelled to include the sum of Rs. 15,781 with the other income of the assessee for the assessment year 1958-59. In appeal, the Income-tax Appellate Tribunal held that the above sum of Rs. 15,781 cannot be included for the assessment for the year 1958-59.

The section on which reliance is placed is section 2(11)(ii) of the Income-tax Act which reads as follows :

'(11) Previous year means -

(ii) in respect of the share of the income, profits and gains of a firm where the assessee is a partner in the firm and the firm has been assessed as such, the period determined for the assessment of the income, profits and gains of the firm.'

It is clear from the section that in respect of the share of the income of a partner of the firm, if the firm has been assessed as such, the period determined for the assessment of the income of the firm shall be taken to be the period for the assessment of the partner in respect of his share of the income from the firm. The period for which the firm of Messrs. T.A. Mohammed & Co. was assessed ended on the 30th of April, 1958. The partner, the assessee, will also have to be assessed in respect of his share of income from the above partnership for the period ending on 30th of April, 1958. The question is whether he should be so assessed during the assessment year 1958-59, or the following year 1959-60. We are of the view that nothing in section 2(11)(ii) indicates that the assessment should be in the year 1958-59. The assessment for the year 1958-59 must be in relation to the income during a period of twelve months which ended on or before the 31st of March, 1958. If the period ended at any time after the 31st of March, 1958, the assessment can be made only in the following year. We hold that the share income of Rs. 15,781 is not assessable in the hands of the assessee in the assessment year 1958-59 and answer the question referred to us in the negative. We make no order as to costs.

Question answered in the negative.


Save Judgments// Add Notes // Store Search Result sets // Organizer Client Files //