KSHETRA MOHAN-SANNYASICHARAN SADHUKHAN vs COMMISSIONER OF EXCESS PROFITS TAX,WEST BANGAL

The Supreme Court held that a partnership formed by the kartas of two Hindu undivided families is legally recognized as a partnership between the kartas themselves, not the families as a whole. Following the death of the kartas, their sons continued the partnership, which was deemed to change in constitution upon the severance of the families on April 13, 1943. The Court ruled that deficiencies incurred before this date could not be carried forward to subsequent accounting periods under Section 8 of the Excess Profits Tax Act (XV of 1940). The findings of the Appellate Tribunal were upheld as factual determinations, preventing the assessees from claiming otherwise.