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PETITIONER: M/S. LAKSHMICHAND BAIJNATH
Vs.
RESPONDENT: THE COMMISSIONER OF INCOME-TAX, WEST BENGAL
DATE OF JUDGMENT: 13/11/1958
BENCH: AIYYAR, T.L. VENKATARAMA BENCH: AIYYAR, T.L. VENKATARAMA GAJENDRAGADKAR, P.B. SARKAR, A.K.
CITATION: 1959 AIR 341 1959 SCR Supl. (1) 415 CITATOR INFO : R 1982 SC 760 (12)
ACT: Income Tax-Partition in Hindu undivided family-Proceedings under S. 25A of the Indian Income-tax Act-Scope-Receipt of amount in accounting year-Assessee’s Plea of capital receipt rejected-Liability to tax as business receipt-lndian Income- tax Act, 1922 (XI of 1922), S. 25A.
HEADNOTE: For the assessment year 1946-47 the appellant, a Hindu undivided family carrying on business, filed a petition before the income-tax Officer, under s. 25A of the Indian Income-tax Act, 1922, claiming that there had been a partition in the family on April 24,1945. As regards the income assessable under s. 23 Of the Act, the appellant’s case regarding six sums aggregating to Rs. 2,30,346 shown in the accounts as the sale proceeds of ornaments, was that at the partition the jewels of the family were sold and that the price realised therefrom was invested in the business. The Income-tax Officer held that the partition was true and that the family had become divided into five groups, but as regards the amount of Rs. 2,30,346 aforesaid he rejected the exp...