K.SUBBA RAO, J.C.SHAH, S.M.SIKRI
MATHURA PRASAD – Appellant
Versus
COMMISSIONER OF INCOME-TAX, U. P. – Respondent
JUDGMENT
SHAH J.-A Hindu undivided family consisting of five brothers-Jagan Prasad, Har Prasad, Mathura Prasad, Sheo Prasad, Basdeo Prasad and their nephew, Dilsukh Rai (son of Badri Prasad, deceased), owned considerable property and carried on different businesses in the names of Messrs.Agarwal Iron Works, Agra, Messrs. Jagan Prasad Sheo Prasad, Messrs. Jagan Prasad Har Prasad and Messrs. Nek Ram Jagan Prasad. On October 11, 1948, a partition of the properties and the businesses of the family was made among the six branches and as a result of that partition a sixth share was allotted in the assets partitioned to the smaller Hindu undivided family of which Mathura Prasad was the manager.
After partition of the joint family estate, the managers of the six branches entered into an agreement of partnership to carry on in the name of Badri Prasad Jagan Prasad the businesses which were formerly conducted on behalf of the larger Hindu undivided family. By clause 8 of the partnership agreement, it was provided :
" That the business of a place shall be managed by one of the members who reside at a place of the business to the best of his or their ability. The allowances of the managing partne
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