INCOME-TAX OFFICER, AGRA vs RADHA KRISHAN

The Supreme Court held that under Section 23(5)(a) and Section 44 of the Indian Income-tax Act, 1922, the liability to pay income tax is statutory and does not impose joint and several liabilities on partners of a registered firm for the tax due from a defaulting partner. The Court clarified that the tax assessed on a partner is based on their total income, including their share in the firm's income, and thus, other partners cannot be held liable for the tax of a defaulting partner. The appeal by the Revenue was dismissed, affirming the lower court's ruling.