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Issues:
1. Validity of partnership deed without consent letters from guardians of minors. 2. Justification of refusal of registration based on absence of supplementary deed or codicil. 3. Interpretation of the requirement for guardian consent in partnership agreements. Analysis: The judgment pertains to an income tax case concerning the validity of a partnership deed involving minors and the subsequent refusal of registration by the Income-tax Officer. The primary issue revolves around the absence of consent letters from the guardians of minors admitted to the partnership. The Income-tax Officer contended that the partnership was not genuine due to the lack of codicils or supplementary deeds. The Appellate Assistant Commissioner opined that while the refusal for the period post January 1, 1975, was justified, it was not proper for the previous period. Both the assessee and the Department appealed to the Income-tax Appellate Tribunal. The Department argued that registration could not be granted even for the initial period as there was only a change in the constitution, not a new firm. The assessee contended that any defects should have been communicated within a month and cited differences between partners for not producing guardian consent letters. The Tribunal, following a decision of the Allahabad High Court, ruled against the assessee, leading to dismissal of the appeal and acceptance of the Department's appeal. However, the High Court analyzed the legal requirements and disagreed with the Allahabad High Court's stance. It held that the guardian's signature is not mandatory for partnership validity, emphasizing the need for consent rather than a signature. The Court highlighted that evidence of consent could be established through various means, not limited to direct signatures on documents. It criticized the Tribunal for not considering alternative evidence of guardians' consent and failing to provide the assessee with an opportunity to present such evidence. In conclusion, the High Court declined to answer the questions directly, instructing the Tribunal to allow the assessee to present evidence of guardians' consent. The Court emphasized that consent could be inferred from conduct or other evidence, not solely reliant on direct signatures. The Tribunal was directed to review any additional evidence presented and make appropriate decisions based on the new information. The judgment underscores the importance of considering all forms of evidence in partnership agreements involving minors and the necessity of demonstrating guardian consent through various means beyond mere signatures on documents.
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