9911796707
TMI Blog1979 (7) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... . yr. 1977-78 ended on 30th June, 1976. The firm filed Form No. 12 signed by the 6 major partners shown in the partnership deed and requested for continuation of registration for the asst. yr. 1977-78. The ITO wanted the assessee s Rep. to explain why the fresh instrument of partnership deed was not written within six months after one of the minor partners attaining majority. The assessee s Rep. in his letter dt. 7th Oct., 1977 has stated that there was no necessity to have fresh partnership agreement as the minor on becoming a major is deemed to have continued as a full fledged partner as she had not given any notice to sever connection with the firm within 6 months after attaining her majority. The ITO since the share of the loss of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessee urged before us that there was no need to bring about a fresh partnership deed and since the partner attaining majority did not dissociate herself from the partnership she must be deemed to have agreed to continue as a partner. However, he has no objection or the matter being sent back to the ITO to follow the latest Board s circular dt. 4th April, 1978. 5. The ld. Deptl. Rep. had placed before us the copy of the Board s different circulars. The first circular is dt. 3rd Jan., 1962 which pointed out that registration need not be refused simply because a minor previously admitted to the benefits of partnership has been made a full fledged partner on attaining majority and no new partnership deed has been drawn up to give e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Partnership Act, when a minor elects to continue as a partner he shares the profits only and so before the firm is allowed continuance of registration for the relevant assessment year, the ITO should satisfy himself on the basis of either an affidavit of the partner who attained majority or his statement on oath that he is not sharing the losses and that the shares in profits and losses as specified in the instrument of partnership admitting him to the benefits of the partnership earlier remained unchanged. In view of the later circular of the Board, the order of the AAC directing to continue the registration is not correct and the assessee has to satisfy the ITO regarding the conditions referred to in the Board s instruction dt. 4th Apri ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
