Commissioner of Income Tax vs M. Uttam Reddy

N.V. Balasubramanian, J.—In pursuance of the directions of this Court, the income tax Appellate Tribunal has stated a case and referred

the following question of law :--

Whether on the facts and in the circumstances of the case, the Tribunal was right in law in dismissing the revenue''s appeal by holding that the fees

payable to the assessee prior to the formation of the firm and received subsequently should be assessed as income belonging to the firm and not an

income belonging to the individual?

The assessment year involved is 1977-78.

Mr. T. Ravikumar, learned junior standing counsel for the Revenue submits that the issue raised in the question is covered against the assessee

by the decision of this Court in the assessee''s own case in Commissioner of Income Tax, Tamil Nadu-I Vs. M. Uttama Reddy, . Learned counsel

for the assessee has not seriously disputed the said provision, but also submits that as against the judgment of this Court rendered in M. Uttam

Reddy''s case (supra), a SLP was also referred and that SLP was also withdrawn by the assessee. Accordingly, following the decision of this

Court in M. Uttam Reddy''s case (supra) and for the reasons stated therein, we answer the question of the law referred to us in favour of the

Revenue and against the assessee. However, in the circumstances of the case, there will be no order as to costs.