1980 (8) TMI 108

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....is 1976-77, for which the previous year was samvat year 2031 corresponding to the period 14th Nov., 1974 to 2nd Nov., 1975. The assessee was a partner in a firm called M/s Shivlal Rameshchand with 80 per cent share in the profits and losses of the firm. In this firm one of the sons of the partner was also a member. The firm was constituted under deed of partnership dt. 16th Sept., 1969. Prior to 1....

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.... the finding of the ld. ITO is not correct. Shri Suresh Sharma employed a capital of Rs. 12,600. Previously, he was employee in the firm and as such, gained considerable experience in this line of business. Previously he was getting salary but in this year no salary was paid to him. Thus, it was contended that there could be no transfer of any share of the firm in the case of Shri Suresh Sharma. R....

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....he hands of new partners. At least no evidence was produced to show that the new partners rendered any services. 4. We have heard the parties and perused the entire evidence on record. As a result of existence of new partnership firm all the partners agreed to carry on the business on the terms and conditions specified in the partnership deed. All the partners agreed to share profits and losses....

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....the business of the firm. In the year of account business increased considerably, as compared to the business of the earlier years. This partner also rendered service in the firm. All the partners also agreed that Shri Naresh Sharma shall get 15 per cent share of profit in the firm. Both the new partners also were required to bear the losses. Aforesaid facts would go to show that in case of Shri N....