9911796707
TMI Blog1985 (7) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee. In the second year, he further noticed that a new lady partner Smt. Maina Devi had been introduced. After examining her, he again came to the conclusion that Smt. Maina Devi appeared to be not a genuine partner of the assessee-firm and, accordingly, he refused to grant registration to the firm on this score. Qua the first year, the assessee went in appeal to the AAC and then came up before the Tribunal, vide its order dated 28-2-1983. The Tribunal noticed that Smt. Daya Devi had been given a gift of Rs. 5,000 by her father-in-law which she deposited in the firm on 14-8-1978. Her father-in-law admitted that he had made a gift of Rs. 5,000 to Smt. Daya Devi on 14-8-1978. But before the ITO, Smt. Daya Devi deposed that the gift had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Kisan Tractors. In any case, he was of the opinion that Smt. Daya Devi had clearly stated before the ITO that she was a partner with eight others in the business of Kisan Tractors having 10 Np. share, she had affirmed about the receipt of her share of profit and signing of papers of her own. Therefore, her ignorance of certain details relating to the firm was not fatal to the assessee's claim for registration. He accordingly granted registration. 2. In the second year, the AAC thoroughly scrutinized the statement of Smt. Maina Devi and noticed that she had clearly deposed about her joining the firm, share of profits, and it had been shown that she had withdrawn Rs. 12,000 from her savings bank account with the Union Bank of India and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estment from 1964 and onwards ? Answer : These were kept by me with myself. Question 6 : When did your father-in-law give the amount of Rs. 5,000 to you whether it was before your marriage or on the date of your marriage or after the date of your marriage ? Answer : These were given to me after the marriage when I came to their house after my marriage. Question 7 : Were these amounts given to you in cash by Shri Rameshwar Das ? Answer : Yes, these rupees were given to me in cash. Question 8 : You have stated that you got these rupees in cash in 1964 then why you did not invest this amount in a bank or in a post office and why did you keep with you for a period of 14 years ? Answer : This was my wish and when my brother-in-law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st office or a bank. In her statement, she stated that it was in the post office but the pass book produced relates to a bank. She could not tell what was the amount deposited by her in the bank. She conceded that she became a partner at the instance of Atmaram s/o her husband's brother. To most of the questions relating to the working of the firm, her simple answer was she did not know anything. The details of her deposits and withdrawals could not be given by her initially but were only given after seeing the bank pass book and as the departmental representative rightly suggested the assessee may have taken benefit of the withdrawal by this lady of a sum of Rs. 12,000 on 20-9-1979 to show that she had made some investment on the first day ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thammal Co.'s case. So far as the authorities quoted on behalf of the department are concerned in S.P. Gramophone Co. v. CIT [1974] 97 ITR 532 (Punj. Har.), the bank from which overdraft has been taken by the original firm had not been informed of the reconstitution. In the account books, there were accounts of only 3 of the partners, although the firm had six partners. There was no material to prove that the profits or losses had been divided in the ratio specified in the instrument of partnership. That case has, therefore, no bearing on the present issue. Similarly, in Young India Mining Transport Co. v. CIT [1984] 149 ITR 226 (Delhi), a partnership firm had been constituted between A and B who were employees of D and D's minor chil ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
