1978 (3) TMI 74

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....AWAL J.--This reference relates to the assessment years 1965-66 and 1966-67. The assessee, Messrs. Mardan Khan Rafiq Ahmad, is a partnership firm consisting of Mardan Khan and his son, Rafiq Ahmad. The firm consisting of the aforesaid two persons started the business from January 1, 1963. Subsequently, an instrument of partnership was executed on June 25, 1963. The shares of the partners in the pr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....al before the Tribunal. The Tribunal allowed the appeal, set aside the orders of the subordinate authorities and gave the benefit of registration to the assessee-firm. Aggrieved by the aforesaid order of the Tribunal, the CIT filed an application under sub-s. (1) of s. 256 for referring the questions mentioned in the application to this court. The Tribunal being satisfied that the following two qu....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t case was whether the assessee-firm could be considered to be a fake one simply because the shares of the partners in the profits were not distributed in accordance with the deed dated June 25, 1963. As stated above, the shares of partners in the profits and losses were mentioned as 10 annas of Mardan Khan and 6 annas that of Rafiq Khan, but in the account books the assessee instead of dividing t....