1979 (3) TMI 42

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.... reference made under s. 66(2) of the Indian I.T. Act, 1922. The assessee-firm had applied for renewal of registration under s. 26A of the Indian I.T. Act, 1922. The ITO found that year after year the profit or loss of the assessee-firm was not being distributed but carried forward in the books of the firm and, therefore, the firm was not entitled to renewal of the registration. He, therefore, ref....

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....her to the Appellate Tribunal. It appears from the order of the Tribunal that no material was produced to show that the profits were either distributed or credited to the individual account of the partners of the firm. In a very brief order, the Tribunal disposed of the appeal and observed : " The assessee's authorised representative was not in a position to place before us any material to show....

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....ution of profits amongst the partners and, according to the learned counsel, it was sufficient compliance with the provisions of s. 26A read with the Rules if the shares of the profits are credited to the accounts of the partners. According to the learned counsel, this has been done and the authorities were, therefore, not right when they refused to renew the registration of the firm. It is not....

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.... the assessee that the Tribunal did not look into the accounts and, according to the learned counsel, the profits have been distributed in the sense that the share of each partner has been credited to his account. It is difficult to entertain this grievance since the Tribunal has clearly observed that no material has been placed before it to show that the profits were distributed between the partn....