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TMI Blog2016 (8) TMI 741X X X X Extracts X X X X X X X X Extracts X X X X ..... n 13(b) of the Partnership Act will not apply”. Thus, there is a categoric finding in the judgment in Nalini V.Saraf (2003 (7) TMI 22 - KERALA High Court ) that section 13(b) of the Partnership Act will not apply to the firm. The aforesaid facts would show that the Tribunal was justified in its conclusion that section 13(b) of the Partnership Act would not apply. Consequently, the Tribunal's order dismissing the appeals of the Revenue cannot be interfered with as illegal. - Decided in favour of assessee. - I.T.A.Nos.1170, 1370, 1387 & 1391 of 2009 - - - Dated:- 21-6-2016 - ANTONY DOMINIC DAMA SESHADRI NAIDU, JJ. FOR THE APPELLANT : ADVS.SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX FOR THE RES ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ench of this Court has only approved the judgment in 239 ITR 41(Ker). On this basis, learned counsel contended that the conclusion arrived at by the Tribunal that this Court has already declared that section 13(b) of the Act would not apply to the assessee is illegal and incorrect. 4.However, among the aforesaid two judgments, we find that in the judgment in Nalini V.Saraf (supra), this Court has considered the very same issue and held thus: So far as the first question is concerned, the assessing authority held that section 13(b) of the Partnership Act applies and hence all the partners share profits equally and the share was fixed at 20 per cent. But as rightly stated by the Tribunal, section 13(b) of the Act applies only when ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5.Reading of the above paragraph shows that after referring to the provisions of section 13(b) of the Partnership Act and clause 7 of the partnership deed dated 16.9.1981, this Court held that section 13(b) of the Act would apply only when there is no contract to the contrary and that a look at clause 7 of the Partnership deed would show that there is a contract to the contrary. Proceeding further, this Court has referred to the judgment in 239 ITR 41(Ker) and thereafter held that hence, according to us, section 13(b) of the Partnership Act will not apply . Thus, there is a categoric finding in the judgment in Nalini V.Saraf (supra) that section 13(b) of the Partnership Act will not apply to the firm. Learned counsel for the respondent h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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