1989 (1) TMI 177

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.... also in the capacities of each of them being constituted attorneys of Smt. Sarojkanta Mehan and Shri Vijaykumar Puri respectively since they were at that time out of India. Application for registration u/s 184(2) of the Income-tax Act, 1961 was made to the ITO. It was signed by Shri Amarjit Kumar Puri for himself and also for the remaining three partners who were stated to be in UK. The ITO rejected the application for registration on the ground that neither the deed of partnership, nor the application in Form No. 11 for registration was signed by all the partners personally. According to him, for a deed of partnership and application for registration being valid, it is essential that both the documents should be signed by all the partners....

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....grant registration to the assessee-firm if other conditions were fulfilled. 2. Aggrieved by the said order of the CIT(A) the Department has come up in appeal. Contention of the learned DR is that the instrument of partnership and the application for registration, in order to be valid, must be signed by all the partners personally. In support he placed reliance upon judgment of the Hon'ble Supreme Court in CIT v. Jagan Nath Pyarelal [1985] 156 ITR 220 by which the judgment of the Punjab and Haryana High Court in Jagannath Pyarelal v. CIT [1973] 92 ITR 207 relied on by the assessee before the CIT(A), has been reversed. Referring to the Explanation to sub-section (3) of section 184 he argued that in case of any partner who is absent from In....

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....r liability is or purports to be created, transferred, limited, extended extinguished or recorded...... A document in order to create rights or liabilities or even to record rights and liabilities, must be executed by the parties, whose rights or liabilities the document creates or whose rights and liabilities it records. A mere piece of paper on which appears a recital of certain rights and liabilities could not by itself be able to fasten the said rights and liabilities to any particular person. " In the instant case, it is to be seen that the deed of partnership has been signed by the two partners as each of them constituted attorney of each of the other two partners. Now, the main question is as to whether the said two partners could....