1989 (3) TMI 121

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..... the following two questions of law for the decision of this court : "(1) Whether, on the facts and in the circumstances of the case, the assessee is entitled to registration under the Income-tax Act, 1961 ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that Mayankutty has entered into the partnership at the time when he was competent t .....

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..... noticed that as per clause 2 of the deed, the reconstituted partnership should be deemed to have come into force with effect from April 1, 1975, and on that day Mayankutty was only a minor. So, he took the view that Mayankutty could not be a partner on April 1, 1975, and so the firm was not entitled to registration for the year 1976-77. In appeal, the Commissioner of Income-tax (Appeals) held th .....

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..... ed did not make Mayankutty a partner on April 1, 1975. It was provided only for the purpose of taking accounts. Since a valid partnership deed was entered into on August 25, 1975, the firm was entitled to registration. Construing the deed, the Appellate Tribunal held that the effect of clause 2 of the partnership deed is only to this effect -that the four parties became partners on August 25, 1975 .....

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..... e decision of this court. We heard counsel. We concur with the Income-tax Appellate Tribunal in holding that Mayankutty became a partner only on August 25, 1975, on the date when the deed was entered into. All that clause 2 of the deed provided was that the firm is to take accounts back to the date, April 1, 1975. It only means that for taking accounts, the transactions front April 1, 1975, shou .....

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..... en he was a major and so competent to contract. Based on this finding of fact, the further finding that the partnership was validly formed, is sustainable. No question of law arises on this score. We answer question No. 2, referred to us, in the affirmative, in favour of the assessee and against the Revenue. A copy of this judgment, under the seal of this court and the signature of the Registrar .....

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