1981 (10) TMI 87

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..... Kanoj 31% 3. Smt. Gomti Debi Kanoi 19% 4. Shyamsundar Kanoi 19% Actually in the books of accounts the actual distribution was found to have been made in the following ratios: 1. Shri Jhabarmal Kanoi 30% 2. Bhagwati Pd. Kanoi 30% 3. Smt. Gomti Debi Kanoi 20% 4. Shyamsundar Kanoi 20% The ITO, therefore, called upon the assessee to explain as to why the registration granted to it should not be cancelled, to which the assessee's reply was that the firm had been registered ever since the year 1967-68 and there has been no change in the constitution nor could it be said that there was no genuine fi .....

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..... deed was 6 annas and the share of his sons as 5 annas each. An application had been made in the proper form but the CIT found that the division of shares was not made in accordance with the division of profits indicated in the partnership deed. Instead of 6 annas and 5 annas each the shares were distributed in equal proportions, i.e. 31/3 annas each. The ITO and the AAC had held that was the firm not entitled to registration. The Tribunal however, was of the opinion that such mistake could have been committed by the Accountant inadvertently because the partners were the father and the two sons and ordinarily could have equal shares. On a reference, the High Court held that the partnership was genuine and was entitled to registration. Follow .....

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..... he Accountant. In the present case, there is a positive assertion that the difference had resulted because of an arithmetical mistake committed by the Accountant which had been subsequently corrected by duly debiting/crediting the accounts of the respective partners. At the time of hearing of this appeal it was pointed out on behalf of the assessee that the mistake had crept in because originally when the partnership was constituted the shares were specified in annas and paise and while converting them into paises the Accountant made a clerical mistake. This explanation appeared to be quite plausible. For the mere inadvertent mistake of Accountant a firm should not be disentitled to its legitimate right of registration. Reference may be mad .....

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