Section 51 - Amendment of section 185 - Taxation Laws (Amendment) Act, 1975

51. Amendment of section 185. In section 185 of the Income-tax Act, in sub-section (1), for the Explanation, the following Explanation shall be substituted, namely: Explanation. For the purposes of this section and section 186, a firm shall not be regarded as a genuine firm if any partner of the firm was, in relation to the whole or any part of his share in the income or property of the firm, at any time during the previous year, a benamidar (a) of any other partner to whom the first-mentioned partner does not stand in the relationship of a spouse or miner child, or (b) of any person, not being a partner of the firm, and any of the other partners knew or had reason to believe that the first-mentioned partner was such benamidar and such knowledge or belief had not been communicated by such other partner to the Income-tax Officer in the prescribed manner. .