1992 (10) TMI 33

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..... g out of the order of the Tribunal dated April 10, 1986 : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified legally in upholding the decision of the Appellate Assistant Commissioner who directed to treat the firm as a registered firm, even though he was not satisfied about the genuineness of the firm and a partner was held to be benami o .....

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..... wel Corporation v. CIT [1987] 163 ITR 293, has held that once a partner of a firm has been assessed individually, the firm's income cannot be assessed treating the firm as an association of persons. The Income-tax Appellate Tribunal on the basis of this judgment came to the conclusion that once the share of the firm in the hands of the partner has been assessed before making the assessment of the .....

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..... an educated lady and can simply sign or write her name and with regard to the investment, contrary to the fact, it was stated by her that money was kept by her till it was deposited in the firm. The Tribunal came to the conclusion that the capital account shown in her name is unexplained and it does not belong to her. This actually belongs to Shri Chandra Shekhar, son of the lady, in whose books t .....

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..... ledge or belief had not been communicated by such other partner to the Assessing Officer in the prescribed manner. " From a reading of the above Explanation, it is evident that, in a case where the alleged partner was not a spouse or a minor child and was a benamidar, then the firm cannot be regarded as a genuine firm. The registration to a firm can be granted by the Income-tax Officer only when .....

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..... he benamidar is on account of the other real owner, namely, the son and he being the only person, the firm cannot be registered as a partnership firm. In these circumstances, we are of the view that the Income-tax Appellate Tribunal was not justified in granting registration when the genuineness of the firm was not established and one of the partners was held to be the benamidar of the other and t .....

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