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Interpretation of partnership deed regarding hire charges receivable for a poultry farm business for assessment year 1976-77. Analysis: The judgment pertains to a dispute regarding the determination of hire charges receivable from a partnership arrangement for a poultry farm business for the assessment year 1976-77. The partnership deed between a private limited company and another party specified that the hire charges for using assets belonging to the company should be equal to the depreciation on those assets. The dispute arose when the company claimed a higher amount as depreciation compared to what was debited to the profit and loss account. The Assessing Officer initiated proceedings to reassess the hire charges, leading to appeals and references before various authorities. The main contention revolved around the interpretation of clause 6 of the partnership deed, which explicitly stated that the amount to be debited to the profit and loss account as expenses of the partnership should be determined based on the depreciation on the assets. The company had claimed a higher depreciation amount, but the court emphasized that the clause specified the amount to be debited, which was Rs.1,24,378, as per the profit and loss account. The court noted that the company's adjustment of depreciation for previous assessment years did not alter the requirement of clause 6, which focused on the actual amount debited to the profit and loss account. Both the Revenue and the assessee presented arguments based on the applicability of previous judgments and the differences in factual backgrounds between the present assessment year and previous years. However, the court disregarded these arguments and focused on the specific language of clause 6 in the partnership deed. The court concluded that the determination of hire charges should align with what was debited to the profit and loss account, affirming the amount of Rs.1,24,378 as the hire charges receivable from the partnership arrangement for the assessment year 1976-77. In summary, the judgment clarified the interpretation of the partnership deed regarding hire charges for a poultry farm business, emphasizing the importance of adhering to the specific terms outlined in the deed. The decision favored the assessee, affirming the hire charges at Rs.1,24,378 as per the profit and loss account, and disposed of the reference accordingly.
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