1985 (10) TMI 131

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....tinuation of registration for the assessment year 1980-81 and directing him to take the status as unregistered firm and recompute the tax payable. An instrument of partnership dated 23-7-1977 was executed constituting the assessee-firm with 10 partners of whom one Shri B. Umamaheswara Reddy was shown as a full-fledged partner. It was found that he was a minor at the time of execution of the deed. He became a major only on 5-4-1978. Hence, in the assessment year 1978-79 registration was refused by the ITO which was upheld on appeal by the Commissioner (Appeals). For the assessment years 1979-80 and 1980-81, the assessee had originally filed application in Form No. 12. Subsequently, the assessee filed Form No. 11 on 3-1-1982 accompanied by a ....

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....g the accounting year relevant to the assessment year 1979-80. By a letter dated 18-1-1982 Shri B. Umamaheswara Reddy stated that after attaining the age of majority, he decided to continue as a full-fledged partner agreeing to all the terms and conditions of the deed dated 23-7-1977. He signed Form No. 11 as a full-fledged partner for the assessment year 1979-80 and Form No. 12 for the assessment year 1980-81. Thus, there was a valid partnership in existence during these two years and the ITO was right in granting registration to the assessee-firm for 1979-80 and continuation of registration for 1980-81, and the Commissioner was not justified in cancelling the orders of the ITO. He placed strong reliance on the Full Bench decision of the K....

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.... on 5-4-1978. He signed application in Form No. 11 for the assessment year 1979-80 and in Form No. 12 for 1980-81 as a full-fledged partner accepting all the terms and conditions of the partnership deed. Even though he was a minor at the time of the execution of the deed on 23-7-1977 he was a major during these two years and he accepted the terms of partnership deed by letter dated 18-1-1982 and signed Form No. 11 as full-fledged partner. Thus, in our view, there is no infirmity in granting registration to the assessee-firm for the assessment year 1979-80 and continuation of registration for 1980-81. 6. In Phair Laboratories' case one Shri C.V. Cyriac was a minor at the time of the execution of the partnership deed dated 10-12-1963. He rea....