1985 (2) TMI 17

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....g the order passed by the Commissioner of Income-tax under section 263 of the Act? " The assessee was allowed registration under section 185 of the Income-tax Act, 1961, on the strength of a partnership deed executed on January 5, 1973. According to the deed, Premanand and Dwarkadas being minors were admitted to the benefits of the partnership. For the assessment year 1975-76, accounting year ending Diwali 1974, the assessee filed declaration in Form No. 12 seeking continuation of registration of the firm. On the basis of this declaration, the Income-tax Officer allowed continuation of registration to the assessee-firm. The assessment records were examined by the Commissioner of Income-tax who found that during the accounting year releva....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... doubt about the genuineness of a partnership, the claim of continuation of registration should not be refused simply because a minor previously admitted to the benefits of the partnership has been made a full-fledged partner on attaining majority and no new partnership deed has been drawn up to give effect to this change. The Board was of the opinion that the view taken by the Allahabad High Court is a narrow view of the law but this direction has not to be given effect to within the jurisdiction of the Allahabad High Court. The Tribunal found that there was no dispute about the genuineness of the firm and, therefore, the circular of the Board referred to above applied to the facts of the case and should have been followed. Therefore, the ....