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Issues:
1. Dispute over continuation of registration for all years under consideration. 2. Change in profit-sharing ratios leading to cancellation of registration. 3. Contention regarding minor mistake in profit-sharing ratios. 4. Comparison with previous court decisions on similar cases. 5. Jurisdictional issue regarding the authority to decide an appeal. Analysis: 1. The primary issue in this case revolves around the right of the assessee to maintain registration for all years under review. The Income Tax Officer (ITO) observed discrepancies in the distribution of profits compared to the partnership agreement, leading to a challenge to the continuation of registration. 2. The ITO contended that the alteration in profit-sharing ratios constituted a change in the firm's constitution under section 187(2)(b) of the IT Act, warranting the cancellation of registration. Despite the assessee's argument that the partnership remained genuine with no substantial changes, the ITO proceeded to cancel the registration for all relevant years. 3. The assessee, in its appeal to the Appellate Assistant Commissioner (AAC), emphasized that the variance in profit-sharing ratios was a minor error rectified by adjusting the partners' accounts. Citing precedents from the Andhra Pradesh and Allahabad High Courts, the assessee argued that such minor discrepancies should not disqualify the firm from registration. 4. The AAC, aligning with the decisions in previous cases, ruled in favor of the assessee, emphasizing the genuineness of the partnership despite minor errors in profit distribution. The Appellate Tribunal, after a detailed review of the facts and circumstances, upheld the AAC's decision, highlighting the factual nature of profit-sharing disputes and the corrective actions taken by the firm. 5. Additionally, a jurisdictional challenge arose concerning the AAC's authority to decide on an appeal where the income exceeded a specified threshold. Citing relevant notifications and provisions, it was determined that the AAC lacked jurisdiction to decide on one specific appeal, necessitating a transfer to the appropriate authority. 6. Ultimately, the Tribunal dismissed appeals related to registration continuity while allowing one appeal for statistical purposes due to the jurisdictional issue. The judgment reaffirmed the significance of genuine partnerships and minor errors not warranting the denial of registration rights, emphasizing the corrective actions taken to rectify discrepancies.
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