1981 (9) TMI 166

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.... an application in form No.11 on 4th March, 1977 duly supported by an instrument of partnership executed on 25th Nov., 1976. The original of the instrument with a copy thereof was filed before the ITO. The ITO also recorded that execution of this fresh deed was necessary because Shir Telu Ram died on 19th Nov., 1976 and in his place, his widow Smt. Surji Devi was taken as a partner. Thus, there were two periods constituting the previous year ending on 31st March 1977 relevant to the assessment year under appeal. The two periods consisted of the periods from 1st April 1976 to 19th Nov., 1976 when the firm included Shir Telu Ram as one of the partners and from 20th Nov., 1976 to 31st March 1977 when the new deed became operative. The ITO reco....

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....e firm. This change necessitated 7 due to the demise of one of the partners, Shir Telu Ram. Otherwise, the firm had been granted registration in the previous assessment year. It is a genuine form and was granted registration even in the subsequent assessment year. The instrument that evidenced the change was drawn on the 25th Nov., 1976 and in cl. 5 it provided that the business of the firm shall be supervised by the parties Nos. 2 and 3 in the best interest of the business with any remuneration in lieu thereof. This deed was considered by the ITO when he allowed registration by an order made under s. 185 (1) (a) on 31st Dec., 1977. The Commissioner has recorded in his impugned order that the circular of the CBDT that payment of salary or i....