1958 (3) TMI 90

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....partners was unfortunately omitted to be included in the deed dated March 29, 1954. This omission was noticed in the course of the proceedings before the Income-tax Officer, when the firm applied for registration under section 26A of the Income-tax Act for the assessment year 1955-56. The year of account had ended on March 31, 1955. On September 17, 1955, the partners executed another document, which was supplemental to the deed of partnership dated March 29, 1954, and which provided: "the parties hereto agree to rectify that error though the same subject matter is clear from clauses II, 34 and 41-A of the deed, dated March 29, 1954. We hereby agree that for purposes of clarification the following clause shall be added as clause 20-A in the....

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....uses 11, 34 and 41(a) each provided for a contingency other than the division of the normal profits of the firm in relation to the capital subscribed under clause 4. The Tribunal was right in holding that without clause 20-A there was no specification of the individual shares of the partners. It is not therefore necessary for us to decide in these proceedings whether an inference that could be drawn from the other terms of the deed of partnership would satisfy the test of specification of the shares prescribed by section 26A of the Act. We are, however, unable to agree with the Tribunal, that the deed of partnership, after it had been rectified by the further deed dated September 17, 1955, still failed to specify the shares of the indivi....

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....es that they shall be partners." The learned counsel for the assessee relied on Commissioner of Income-tax v. Shantilal Vrajlal and Chandulal Dayalal and Co. [1957] 31 ITR 903. In that case an application for registration of the firm was made in August, 1951, in respect of the year of account which ran from November 2, 1948, to October 21, 1949, on the basis of a deed of partnership dated October 26, 1950, which itself was beyond the year of account which had ended on October 21,1949. The assessees made a second application on September 12, 1951, and produced an agreement of that date which satisfied the requirements of section 26A of the Act. On these facts the learned judges allowed the application for registration; they held that even....