9911796707
TMI Blog1965 (4) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... ship formed by Jamnadas, Gokuldas and Tapubhai was not genuine, and whether the Tribunal was justified in refusing registration of the firm under section 26A? The facts material for this reference are these. Under the name and style of Messrs. United Patel Construction Co., two brothers, Jamnadas and Gokuldas, were carrying on, as partners, the business of executing contracts for construction of buildings, roads, bridges and the like. This partnership was dissolved on January 13, 1958, and its business was taken over by another firm of the same name, which was formed on 14th January, 1958, and constituted by Jamnadas, Gokuldas and their third brother, Tapubhai. The first two executed a partnership deed on the same date and sent it to J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the parties to be really effective as governing their rights and liabilities inter se in relation to the partnership business or whether it is only a pretence to escape liability for tax. But a conclusion that a partnership is not genuine cannot be grounded only on suspicion. So, where certain minors were admitted to the benefits of a partnership and there were some circumstances of suspicion suggesting that the minors might be the nominees of their father, the inference drawn by the Tribunal that the minors were the father's nominees was set aside: Commissioner of Income-tax v. Gokaldas Hukumchand [1943] 11 I.T.R. 462. Again, where the inference against the genuineness of a partnership was grounded on considerations having no bea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h could not reasonably be entertained. In the instant case, it is said that the facts that Tapubhai did not know exactly when he joined the firm, what the capital of the business was, what contracts were taken by the firm and what amount was outstanding in the firm as due to him indicated that he was not a partner at all. Since Tapubhai is illiterate, it is not surprising if he could not give the exact date of the partnership contract. Further, it is common knowledge that not all partners necessarily take an active part in the partnership business. A partnership may often comprise some member who is not generally known to be interested in the conduct of the business or adventure. Undoubtedly, his advance is risked in the business, but he ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
