1930 (12) TMI 17

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....rying on a business in copartnership as dealers in piecegoods and commission agents under the name and style of Ramlal Murlidhar. By a memorandum of agreement dated 30th day of April 1928, and made between the three persons to whom I have referred and between them only, it was nevertheless recited that the parties to the agreement together with one Mt. Rajo, the mother of Ramlal, were carrying on ....

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....d it, the Income Tax authorities refused to accept it for reasons which are given by the Commissioner of Income Tax as follows: A partnership to be valid does not require its terms to be embodied in an instrument. Moreover a defective-instrument may be supplemented by other evidence, such as conduct of. the partners, to establish and define those terms. But the Income Tax Act and the rule....

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....inion it is not correct to hold, on the instrument before us, that for the reasons given, it is to be rejected under Clause 14, Section 2. No doubt whether we look to the Act or to the rules made thereunder, there must be a firm constituted under the instrument; but when we come to ask ourselves what is sufficient to satisfy the requirement of the firm being constituted under the instrument, I am ....

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....r of Income Tax has in this case considered. I say nothing by way of objection to the proposition that the Income Tax Officer may have the right to satisfy himself that the transaction evidenced by the instrument is a real thing. But in my opinion if the Commissioner of Income Tax comes to the conclusion that before her death Mt. Rajo had assented to this instrument and that when it was put forwar....