1979 (9) TMI 99

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..... a copy thereof. The partnership deed was executed on 31st Oct., 75 and the accounting period of the assessee has ended on 3rd Nov., 75. This firm has consisted of two partners, namely, Shri Vasam Shanker and his son Shri Vasam Ashok, having equal shares in the profits and losses. Admittedly Shri Vasam Ashok did not invest any amount in the partnership firm. The ITO recorded his statement on oath. .....

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..... he genuineness of the firm was based on purely surmise, suspicion and conjecture. It is not too late in the day for the Department to contend that capital contribution is a "must" for a person to become a partner in a partnership firm. The reasoning of the AAC has, in our opinion attempted to unsettle this settled law. The reason that Shri Vasam Ashok has not contributed the capital to become a pa .....

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