SUNDER SINGH V. INCOME TAX COMMISSIONER AIR 1938 ALL. 452,
It was observed "Whether any property is personal property of a partner or property of firm will be determined on the basis of facts and circumstances of each case. If there is any agreement between partners in this regard, then it shall be determined on the basis of such agreement of partners and in the absence of any agreement between partners following points will be considered while determining whether a property is a partnership property:
- Whether the property was acquired for partnership purposes in the course of the business of the firm
- Whether it was purchased with the assets of firm
- Whether it was purchased by or for the firm
- Whether it was put to the use of the firm and treated as property of firm
- Whether it was entered and carried on in the books of the firm as property of firm.
Coming now to case in hand `A' was the owner of Cinema Hall. When `A' entered into partnership with B for business of exhibiting the films, it is evident that at the commencement of film's business, ownership in cinema hall lies in A's name personally and during the course of business of firm said property i.e. cinema hall has never been shown in the account books of firm as partnership property nor it was intention of parties to treat cinema hall as property of the firm. The agreement of partnership between `A' 3 and `B' also does not mention this property to be property of the firm. So, cinema hall does not within the meaning of Section 14 of Act, come within purview of partnership property. In view of above discussion A's cinema hall will not be a partnership property and claim of B in this regard is not sustainable
