1980 (3) TMI 14

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ssee is a firm. Under cl. 4 of the partnership deed it was provided that the net profits and losses of the partnership shall be shared in certain proportions, viz., 40%, 30%, 15% and 15%. Clause 5 of the partnership deed, however, provides that in case the net profit of the firm exceeded Rs. 20,000, the excess profit shall be distributed among the partners in equal shares. For the assessment year ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ered the existence of cl. 5 and noticed that it was not implemented. Therefore, he called upon the assessee to show cause why the registration granted to it should not be cancelled. The assessee replied that the distribution made according to cl. 4 of the partnership deed was not correct and the necessary rectification was made by reversing the entries. The explanation was not accepted and the reg....