1983 (3) TMI 3

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....n this reference at the instance of the Revenue, the question for our answer is : "Whether, on the facts and in the circumstances of the case, the sub-partnerships are entitled to the benefits of registration under the Income-tax Act, 1961, for the assessment year 1971-72 ?" A single statement of case has been drawn up in respect of three assessees, though for a common assessment year 1971-72. ....

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....o the Income-tax Officer for registration which was, however, turned down by the Income-tax Officer treating the said sub-partnership as an association of persons mainly on the ground that the sub-partnership contravened the provisions of section 14 of the Abkari Act. On appeal, however, the assessees succeeded against which the, Revenue took the matter to the Tribunal which confirmed the order of....

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....angana Area) Abkari Act. Subsequently one of the partners "R" could not raise the necessary funds towards his share ; so "R" and 11 others executed a partnership deed constituting another partnership firm "B" and agreed to finance "R" on condition of sharing profits and losses that accrue to the share of the said "R" in the main firm. Thereafter the application for registration of the said partner....

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....rangers, by constituting another sub-partnership firm, provided they agree to be partners of the sub-partnership. There is no prohibition under the law of partnership or under the provisions of the income-tax law or the rules made thereunder, prohibiting a partner from entering into such sub-partnership with strangers and sharing of profits and losses in respect of his share in the main firm. In s....