Kalva Suryanarayal'La v. Income-Tax Officer, A-3, Ward, Hyderabad

•

A

KALVA SURYANARAYAL'lA

V.

INCOME-TAX OFFICER, A-3, WARD, HYDERABAD

August 23, 1968

[J. C. SHAH, V. RAMASWAMI AND A. N. GROVER, JJ.J B

Income-tax Act (11 of 1922), ss. 23(5) and 44--Firm registeredDissolved-Liability of une partner to pay arrears of ta:c.

The appellant was a partner in a firm which carried on business in 1949-50 and was then dissolved. For lhe assessment year 1951-52 the 1irn1 was ased as a registered firm and its income was apportioned between the partners and taxed in their hands. Subsequently the Comc mco;sioner of J ncome-tax acting under s 33B of the Indian Income-tax Act, 1922 directe<l that the a=ssment of the firm be enhanced. The lncometax Officer after ma.king the enhancement as directed made consequential changes in the assessments of the partners. 1·wo of the panncrs, other than the appellant did not pay the additional tax and the Income-tax omcer issued a notice to the appellant to pay the tax payable by them on tho footing that under the provisions of s. 44 of the Income-tax Acr, 1922 there w1s joint and several liability of each and every partner of D the dis.solv1...-d firm in respect of the arrears of tax. The appellant ti.led a writ petition in the High Court to qu.ish the notice but it was dismissed. In appeal, thi-. Court. HELD : ·1 here is nothing in s. 44 of the Act which supports the contention that for payment of lax asseso;;ed against a partner df registered partnership under s. 23(5) (a) another parlncr becomes liable jointly n.nd severally with the first partner to pay tax. "rhc dis.c;olurion E of the firm n1akes no difference to the application of this principle. [843 C-D)