1978 (11) TMI 91

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..... shares. The ITO found that while the terms of the document required the partners to draw up a balance sheet, no balance sheet had in fact been drawn up. Similarly, while there was a term providing that its capital shall be that as contributed by the partners, the assessee did not maintain a separate capital account. He was of the opinion that these two defects indicated that the firm was not a ge .....

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..... is entitled to succeed. Admittedly, the assessee maintained books of account and the only fault of the assessee pointed out by the ITO was that balance sheet was not drawn up and no separate capital account was maintained. It has been held by the Patna High Court in the case of M/s Sahabuddin Mohammed Raza (1) following the decision of the Supreme Court in the case of Umacharan Shaw Bros. (2) th .....

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