1980 (8) TMI 71

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.... law and was entitled to registration under the provisions of the Income-tax Act for the A. Y. 1969-70 ? " The material facts giving rise to this reference, as set out in the statement of the case, briefly are as follows : The Gwalior Maize Products Ltd. carried on business at Mandsaur of manufacturing starch from maize. The company granted a lease of its factory to one Rajaram Gupta. Before the expiry of this lease, the company faced financial difficulties and the debenture-holders of the company took possession of the property of the company. They instituted a suit against Rajaram Gupta for eviction. A compromise was arrived at in that suit, and in terms of the compromise a decree was passed by the court. Under this decree, Rajaram Gup....

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.... aforesaid question of law to this court for its opinion. According to the Tribunal, the assessee was not entitled to registration because the assessee did not carry on any business activity in the relevant previous year. The Tribunal has, however, observed that there was no dispute that all other normal incidents for constituting a valid partnership agreement existed in the case of the assessee. The short question for consideration, therefore, is whether failure to carry on any business in the relevant previous year can be a ground for refusing registration under the Act when the Tribunal has found that a valid partnership agreement was in existence. Now, the relevant provisions of s. 185(1) of the Act are as follows : " 185. Proc....