2001 (4) TMI 55

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..... granted registration in the year 1966, but had ceased doing the business for which the firm had been brought into existence from the year 1973-74 was nevertheless entitled to retain its status of being a registered firm, and have the amounts which the relatives of the partners earned as, insurance commission by practising his trade as an insurance agent, treated as the income of the firm and have .....

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..... s income as its, and take advantage of the firm's status as a registered firm, cannot constitute in reality the income of the firm. The fact that Alagappan and the firm had entered into an agreement also does not make the activity carried on by Alagappan in securing insurance business and earning commission there from the business of the firm. The business of the firm had stopped by the year 1973- .....

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..... retain the status of being a registered firm even when it had ceased to do business, even when the amount that it was receiving from the close relative of the partner was only the income earned by him, and which income the firm could not have earned without a licence under section 42 of the Insurance Act, which it admittedly did not possess. The questions referred to us are, therefore, answered .....

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