1982 (8) TMI 31

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....was delivered by SOHANI J.-By this reference under s. 256(1) of the I.T. Act, 1961 (hereinafter referred to as " the Act "), the Income-tax Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion Whether the Appellate Tribunal was right in holding that the partnership had come into existence within the ambit and scope of section 4 of the Par....

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....ners during the relevant previous year. Aggrieved by the order passed by the AAC, the assessee preferred an appeal to the Tribunal. The Tribunal held that since the object of the partnership was to instal plant and machinery for the manufacture of nuts and bolts and as the same was installed, the partnership should be held to have come into existence. The Tribunal further found that the finding of....

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....s specified in the instrument of partnership, and (a) if he is satisfied that there is or was during the previous year in existence a genuine firm with the constitution so specified, he shall pass an order in writing registering the firm for the assessment year; (b) if he is not so satisfied he shall pass an order in writing refusing to register the firm. " The aforesaid provision came up....

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....tion of goods had not commenced. The actual production of goods is not necessary for bringing into existence a valid partnership, if the partnership is a genuine partnership. The Tribunal found that the assessee-firm was genuine. In these circumstances, the Tribunal was justified in holding that the partnership had come into existence within the ambit and scope of s. 4 of the Partnership Act on th....