recovery of insurance claim.
prithwish sengupta
(Querist) 13 December 2009
This query is : Resolved
Mr x was a partner of a partnership firm in 1974,. it occoured a loss due to fire and lodge a claim to insurance company.latter on firm discontinued its business completely. insurance company met the claim in 2008-09.and pay rs 1800000. now on request of the other partners ins. compan issued the cheque in the name of one of the partners,Mr. X. who will be liable to pay tax Mr. X or the firm?give case law if any.
Devajyoti Barman
(Expert) 13 December 2009
The partners are always jointly and severally liable for the acts of the firm though its area and share can be limited by the terms and conditions as incorporated in the deed of partnership. In this particular instance the cheque was issued in the name of Mr.X but on behalf of the Firm only and hence all the partners will be liable to contribute towards the payment of tax according to the percentage as mentioned in the Deed if any regarding distribution of profit and loss.In its absence equally.
Vineet
(Expert) 13 December 2009
Repeated query.
Raj Kumar Makkad
(Expert) 13 December 2009
X personally is neither responsible for the liability of tax as he is not entitled for the amount of cheque totally for him. It shall be distributed proportionaltly as per shares.
Sachin Bhatia
(Expert) 19 December 2009
All the partners will be liable to contribute towards the payment of tax according as per their shares.
