1985 (7) TMI 38

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....d fact is that the assessee, M/s. Brahmagiri " B " Estate, was recognised to be a registered firm during the assessment year prior to 1965-66. The firm sought renewal of registration under section 27 of the Kerala Agricultural Income-tax Act, 1950 (the " Act "), for the assessment years 1965-66 and 1966-67 by an application dated June 11, 1965. Annexure " B " provided, inter alia: " The deed of partnership expired by efflux of time on October 8, 1964. We, in spite of efflux of time, have been carrying on the business under the same terms and conditions as set out in the deed of partnership referred to above. We have not been able to sign a fresh deed of partnership in view of the fact that the second of us had been away in the U. K. f....

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....rship came into existence from the very beginning of the relevant accounting year, which, in other words, was in existence for the whole of the accounting year, the assessee was not entitled to have the registration in spite of the fact that the partnership might have existed as stated in annexure " B " (the fresh deed of partnership). Reliance was place on the decision of a Division Bench of this court in CIT v. Joseph & George [1970] 77 ITR 292, in which Raghavan J., as he then was, who spoke for the Bench, stated as follows : " From the language of section 184(4) and section 184(5), we are of opinion that the document need not be operative during the whole year. Sub-section (4) enacts that the application shall be made before the end ....

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....ment which came into existence during the course of the year, provided the business had been carried on throughout the year. In this case, annexure B fresh deed of partnership recites that the partnership was carried on throughout and the deed relates to that period as well as for a further period of five years. The requirement, in the words of Raghavan J., that the document should be in force on the day the application was made remains satisfied if the deed recited the existence of the partnership from the beginning of the year and stated that the deed related to the partnership business. The argument of the Government pleader appearing for the Revenue that because a five-year period is stated in annexure B, that has to be reckoned from De....