1984 (5) TMI 90

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....e firm on the ground that the two partners were found to be constantly absent for a long time from the business and that a substantial portion of the assets of the assessee was in the shape of business with M/s Shyam Sunder Agarwalla & Co. When the matter went up in appeal before the AAC it was contended on behalf of the assessee that as per cl. (4) of the partnership deed the capital of the firm ....

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....re the same people from 1973 to 1975. When the assessee offered for taxation the income received from the said contractors in the earlier years in the status of AOP the ITO accepted and assessed the income. He had accepted that there was genuine business of the AOP. But when the AOP converted itself into a partnership firm by drawing up formal deed of partnership and submitting application under t....

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..... He submitted that the assessee could not satisfactorily explain the reason for advancing huge amount to M/s Shyam Sunder Agarwalla & Co. in which one of the partners firm was also a partner. The ld. counsel for the assessee, on the other hand, highlighted the reasons given by the AAC for coming to the conclusion that the assessee firm was a genuine one and was, therefore, entitled to the benefit....