1994 (3) TMI 22 - HC - Income Tax

Summary

The High Court of Rajasthan ruled in favor of the assessee in a case regarding the refusal of registration to a partnership firm. The Income-tax Appellate Tribunal found that the profits were divided among the partners as per the partnership deed, even though one partner had retired. The Tribunal upheld the registration, citing a similar case from the Andhra Pradesh High Court. The Court agreed with the Tribunal's decision, stating that the profits were distributed in accordance with the partnership deed, and the refusal of registration was unjustified.