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TMI Blog1949 (8) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... ra joint family under the name and style of Baldeodas Rameswar, one Mannalal Musuddi and one Ramkumar Agarwal. Mannalal Musuddi went out of the partnership in November 1942 and a fresh deed was executed by which the two partners carried on the business of the firm, in which the share of Rameswar Nathany (representing Baldeodas Rameswar) was twelve annas and Ramkumar Agarwala three anna? The remaining one anna share was devoted to charity. The deed was dated 10th February 1946. 3. A suit for partition was instituted by one of the members of the Hindu undivided family. That suit was instituted on the original side of this Court and was marked No. 1436 of 1943. That litigation resulted in a compromise and a consent decree was passed. The re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and be verified in such manner, as may be prescribed; and it shall be dealt with by the Income-tax officer in such manner as may be prescribed. 6. Dr. S. K. Gupta, learned counsel for the revenue authorities, drew our attention to the rules bearing on the subject under Rule 2. Any firm constituted under an Instrument of partnership specifying the individual shares of the partners may under the Provisions of Section 26A, Income-tax Act register with the Income-tax officer the particulars contained in the said Instrument on application made in this behalf. 7. Such application shall be signed by all the partners. 8. In the schedule to the form set out in Rule 3 there is a note which says that the application must be signed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n to be referred to this Court. 13. In our opinion, the Appellate Tribunal was justified in taking the view that Section 26A did apply to this case. All that the section requires is that there should be a firm constituted under an instrument of partnership and that the deed of partnership must specify the individual shares of the partners and that an application should be made, in the prescribed form and should comply with the Rules. 14. Dr. Gupta's point is that in the application form it was stated that Nathany was the Karta or manager of a Hindu undivided family. If so it was a mere surplusage. The fact that there was a dissolution of the joint family which was governed by the Mitakahara School of law had no effect at all on th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties and the actual division of the properties by metes and bounds is not necessary. 16. Dr. Gupta argues that under Clause 10 of the decree, it was stated that in the firm of Dudwala and Company the parties had twelve annas share and it was stated that it shall remain joint. But he points out that the consent decree further provided in that clause that the parties shall be entitled thereto according to the shares mentioned in Clause 3 thereof which defines the shares of each of the members of the family in the joint family assets or properties. 17. In our opinion, even if Clause 10 did not state that the parties would be entitled to the 12 annas in the partnership according to the shares mentioned in Clause. 3 of the terms of settlem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not entitled to require the Karta to account for his past dealings in the family property, All that he is entitled to is an account of the family property as it exists at the time he demands a partition. That law was settled in this High Court in the case of Parmeshwar Dube v. Gobind Dube, 43 Cal. 459: (A. I. R. (3) 1916 Cal. 500). After the partition decree was passed, the Rai Bahadur would be liable to render account in respect of the twelve annas share on a different basis. But still he would continue to be a member of that firm and the partnership would not be in any way affected by the passing of that decree in the partition suit. 19. In my opinion the Tribunal was right when it took the view that the partnership continued and Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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