1990 (6) TMI 31

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....operly by holding that since the partners had declared that the profits will be divided amongst the four partners in equal ratio, whether they are minors or majors, and the losses were to be borne by the two senior partners, it could be inferred that they have decided not to burden Shri Tarun Kumar with the share of loss in the firm even after he had become a partner on attaining majority ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that there was no change in the constitution of the firm and the assessee was entitled to continuation of registration of the firm for the assessment year 1973-74 ? " The brief facts are that originally the assessment of the assessee for the a....

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....y reply from the assessee's side in the order of the Commissioner of Income-tax passed under section 263, he proceeded to consider the matter on merits. According to the Income-tax Officer as per the Commissioner of Income-tax, Shri Tarun Kumar, attained majority on July 21, 1971, and on becoming major, he became liable for losses in the firm also. The Income-tax Officer further observed that the instrument of partnership dated May 16, 1970, did not show how losses would be apportioned amongst the major partners on the attaining of majority by the minor partner. There was thus a change in the shares of the partners with regard to the losses of the firm and the certificate about no change in the shares of the partners given by the firm in Fo....