9911796707
TMI Blog1966 (4) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... ve of the assessment year 1954-55 for which the previous year was the 1st December, 1952, to 30th November, 1953. The Income Tax Officer rejected the application for registration on the ground that the firm was not genuine. On appeal, the Appellate Assistant Commissioner held the firm to be genuine, but rejected the application on the ground that it was presented after the expiry of the period of limitation, and on the additional ground that minors were made responsible for losses which was contrary to law. On second appeal, the Tribunal disagreed with both these grounds given by the Appellate Assistant Commissioner and held that the delay in presentation of the application had been condoned by the Income Tax Officer himself so that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntitled to share in profits but is not liable to bear a similar proportion of any losses, this fact should be indicated by putting against his share in column 6, the letter P. It appears to us that the effect of these entries to be made in the form is that an assessee desiring registration must enter in column 6 the share of each partner in the balance of profits, and in cases where there is any partner who is entitled to share in profits only but is not liable to bear a similar proportion of any losses, the further entry to be made is of a letter P against his name in that very column. No further entries are required to be made. Thus, if there be four partners having equal shares in profits, entries in column 6 will be against the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the letter P against the entry of that partner who was not to share in losses. This entry was considered sufficient and no further requirement was considered necessary, under which the assessee should recalculate or respectively the shares of the partners in the losses. The entries in our opinion were clearly made in accordance with the directions contained in the Rules and in the Notes to the form itself. As urged by learned counsel for the department, it may be that the failure to enter the shares of the remaining partners in the losses may entail some inconvenience and possible difficulty in calculating their shares in losses. In fact, learned counsel went a step further and urged that it may not be possible to calculate at all t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hip. This note clearly served the purpose of indicating exactly what the idea of the letter P in column 6 would have indicated. In fact the note made by the assessees was an effort to show that these partners were sharing profits which could have been shown by the letter P in accordance with Note 2. In substance, therefore, the entries actually made complied with the requirements of Note 2 and consequently we disagree with the Tribunal that there was any defect in filling up the form in this respect. The second reason given by the Tribunal was that particulars required to be mentioned in Part B of the Schedule of the application had not been given at all. On this point it appears that the Tribunal very clearly misdirected itself. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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