1982 (7) TMI 61

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.... that the assessee was entitled to registration ? " The assessee-firm was constituted by a deed of partnership dated 31st December, 1965, consisting of six partners and one Bhimchand Mangalchand Chowdhury, a minor admitted to the benefits of the partnership. After reciting the shares of the parties it has been set out by the Tribunal in a statement of the case which contained, inter alia, the following clauses : " 12. On and from the first day of month next succeeding the month in which the said Bhimchand Mangalchand Chowdhuri attains majority, he shall, if he elects to be a partner, be admitted as a partner in this partnership on the terms and conditions as to capital contribution and sharing of profits and losses among the partners ....

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....uri      10,000          16            18  Mrs. Shantaben Surajmal Choudhuri       10,000          16            18  Hirachand Mangalchand Choudhuri         10,000          16            18  Rajnikant Dhirajlal Kamdar                ---   &n....

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....g parties hereto, namely, (1) Mrs. Ratanben, (2) Mrs. Bhartiben, (3) Mrs. Shantaben, (4) Mr. Hirachand, (5) Mr. Rajnikant and (6) Mr. Mahendrakumar and through Mr. Hirachand is the karta of his HUF are not and are not to be regarded as partners (sic). " It is not necessary for us to set out the other clauses which have been referred to by the Tribunal. The assessee made an application for registration under s. 185 of the 1961 Act, for two years under reference. The ITO, however, rejected the case, for the reasons mentioned in the order passed under s. 185 of the 1961 Act. The Assistant Commissioner upheld this order. There was an appeal. The Tribunal, after noticing the rival contentions and referring to the relevant provisions of law, o....

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....documentary evidence that the minor had elected to be partner on attaining majority. In the present case, no sooner did Sri B. M. Choudhuri attain majority, he intimated to the other partners of the firm that he had elected to be a partner of the firm and that he would agree with the terms and conditions as to capital contribution and share of profits or losses amongst the partners as mentioned in cl. 12 of the deed of partnership, with effect from 1st November, 1966. Lastly, in that case there was no documentary evidence that the existing partners had accepted the minor's election to be a partner in the firm, on his attaining majority. In the present case, the other partners, by their letter dated 1st November, 1966, had accepted Sri B. M.....