1965 (11) TMI 15

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....e Income-tax Appellate Tribunal, Madras Bench, under section 66(2) of the Indian Income-tax Act, 1922. The question referred is : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in refusing registration of the firm ?" The registration sought was in respect of the assessment year 1960-61. The accounting period concerned was the twelve months f....

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.... partnership is engrossed was purchased only on March 23, 1959, as can be seen from the endorsement made by the vendor of that stamp paper. In view of this the Appellate Tribunal came to the conclusion that the deed of partnership could not have been executed on March 1, 1959, that is, 22 days prior to the purchase of the stamp paper itself. Section 26A of the Indian Income-tax Act, 1922, reads....

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....rms which have been created by an instrument of partnership but also those which may have been created by word of mouth but have been subsequently clothed in legal form by reducing the terms and conditions of the partnership to writing. In other words, firms which were created by word of mouth but the constitution of which has subsequently been reduced to writing can also be registered under the s....

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....ritten instrument, (b) the existence of a written instrument during the accounting year specifying the individual shares of the partners. " In this case it is not possible to say that the partnership was factually in existence during the whole of the accounting year. The accounting period with which we are concerned, as already stated, is the twelve months from April 1, 1959, to March 31, 1960.....