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TMI Blog1974 (2) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... PRASAD SINGH., UNTWALIA. JUDGMENT UNTWALIA C. J.-This is a reference by the Income-tax Appellate Tribunal, Patna Bench, under section 256(1) of the Income-tax Act, 1961. The assessee is a partnership firm consisting of five partners. They carry on business in chanti and dal milling at Patwah in the district of Patna. It filed an application under section 26A of the Indian Income-tax Act, 1922, for registration of the firm for the assessment year 1961-62. The Income-tax Officer refused registration on the following two grounds: "(i) the stamp for the partnership deed was purchased on November 11, 1959, whereas the recital in the deed of partnership showed that it was written on October 31, 1959; and (ii) the statements of two of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... valid instrument when the stamps were purchased on November 17, 1959. The assessee asked for a reference to be made in relation to the assessment year 1962-63 only. The Tribunal has referred the following question of law to this court in this case: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in refusing registration to the firm ?" In my opinion, the question of law referred to this court is not properly framed. To bring out the real issues between the parties, it has to be reframed. In my opinion, the question of law which does arise from the Tribunal's order in appeal is the following: "Whether the Tribunal was right in law in holding that the deed of partnership in question was an invalid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to be read as a whole, and if there is any conflict between one part of the document and the other, then effect has to be given to that part of the document which finds support from other facts and circumstances of the case. Hence, it is plain that the recital about the date of execution of the document on the 31st day of October, 1959, was incorrect. Stamps were purchased much later, and on those stamps the deed could not be executed on October 31, 1959 The actual execution of the deed came in when the partners signed the document on May 5, 1960. That being so, to all intents and purposes, the document was executed on March 18, 1960, and one could take the view that the partnership did not come into existence on October 31, 1959, on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Appellate Assistant Commissioner had held the partnership to be genuine, upsetting the finding of the Income-tax Officer, and in the Tribunal's order there is no inkling as to there being any illegality, impropriety or incorrectness in that finding of the Appellate Assistant Commissioner. Rather, as I read the order of the Tribunal, even in the light of the separate note which the learned Judicial Member has added to the judgment of the learned Accountant Member, it has not at all differed from the view of the Appellate Assistant Commissioner that the partnership is genuine. As stated above, the Income-tax Officer had held the deed to be defective and invalid because of the difference in the recital of the date of execution, the date o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t year 1961-62, but not for the year 1962-63. Mr. K. N Jain, learned counsel for the assessee, placed reliance upon a recent decision of a Bench of the Madras High Court in Imperial Automobiles v. Commissioner of Income-tax. Facts were very much similar, and the Madras High Court took the view that the registration could not be refused merely because of the difference in the date of execution as recited and the date of actual execution. The learned judges constituting the Bench, however, thought that this could lead to a suspicion about the genuineness of the partnership, and since the Tribunal had not recorded any finding in that regard a further statement of the case was called for. The difference between the facts of the case before th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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