1980 (2) TMI 3

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.... assessee's partnership as having been validly formed to carry on the excise business ? (2) Whether, on the facts and in the circumstances of the case the Tribunal was right in law in confirming the orders of the lower authorities, refusing registration to the assessee-firm under the Income-tax Act? The material facts are that one Narsaiya took five liquor contracts on 21st July, 1967, on payment of Rs. 2,39,400. On 1st September, 1967, Narsaiya executed a deed of partnership along with another Narsaiya, son of Mallahiya, for carrying on the above liquor business The firm sought registration under s. 184 of the I.T. Act. The ITO rejected the application for registration on the ground that the partnership was entered into without the p....

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....the working of such privilege in any way or manner without the written permission of the Collector, which shall be endorsed on the licence. A partner, sub-lessee, or transferee shall be bound by all the conditions of the licence, but the original licensee also shall continue to be responsible to the State Government for the due payment of the licence fees and proper working of the shop, except that in the case of a transfer his responsibility shall cease as soon as the transfer is endorsed on the licence. " The licences granted under the Excise Rules contain a condition that the licensee is bound by the General Licence Conditions prescribed by the Rules. Section 39 of the Act makes any act done in breach of any of the conditions of the l....

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....District Excise Officer is of no help to the assessee. In our opinion, therefore, the Tribunal was right in holding that the written permission of the Collector required by r. 6 was not obtained and that no such permission was endorsed on the licence. The learned counsel for the assessee then submitted that the cases of this court mentioned above on the construction of r. 6 required reconsideration. In this connection reference was made to the decision of the Supreme Court in Jer and Co. v. CIT [1971] 79 ITR 546. The Supreme Court judgment is clearly distinguishable. In that case, r. 322 of the Excise Manual (U.P.), on the basis of which it was held that there was a prohibition of entering into partnership, was held to be inapplicable to....