1980 (6) TMI 18

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....urt was delivered by SRINIVASA IYENGAR J.-The Income-tax Appellate Tribunal has referred the following common question in relation to the assessment years 1972-73 and 1973-74: " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee-firm was not entitled to registration under the Income-tax Act, 1961 ? " The assessee was a registere....

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....profits of the business shall be reckoned at Re. 1 and the partners shall share the same as under : Ps. Bhagwanchand Hummatmul 0.25 Parsmal Himmatmul 0.25 Seremul Ottaji 0.30 Mohanlal Seremul 0.15 Charity 0.05 --------- Total 1.00 --------- Losses, if any, will be shared in the same ratio. At the end of the year (accounting year), the profit or loss of the year sha....

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....950] 18 ITR 914, in support of his conclusion. He, accordingly, set aside the assessment made in the status of a registered firm and directed the ITO, Hospet, to redo the assessment in the status of an unregistered firm. Feeling aggrieved by this order, the assessee preferred appeals to the Tribunal. In the course of its order, the Tribunal was of the view that the charity as such was not a par....

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....y, shall be shared in the same ratio would only mean that the loss would be shared in the same ratio as the profits would have been shared by the four partners. The allocation of 5 paise in a rupee to charity is not by way of allocation of a share to a partner, but only distribution of the profits providing for a reservation in favour of the charity to that extent. The Commissioner, in our opinion....