9911796707
TMI Blog1984 (1) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment year 1967-68 ? The brief facts giving rise to this reference are as follows: Firm M/s. Hind Agencies, Khanda Manak Chowk, Jaipur, was partnership firm having the following members: 1. Shri Girdhari Lal s/o. Shri Tulsi Das 2. Shri Shyam Sunder s/o. Shri Chand Narang 3. Shri Raj Kumar s/o. Shri Girdharilal 4. Shri Suresh s/o. Shri Girdhari Lal 5. Shri Ramesh Kumar s/o. Shri Girdharilal. A partnership deed was executed among the parties on June 17, 1964. The shares of the partners were equal. This partnership provided that if any partner unfortunately dies or retires from the firm in the middle of the accounting period and, if a new partner is taken during the same accounting period, the same account book ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umar, son of Shri Girdharilal, was also admitted to the benefits of partnership to the extent of 20% profit and it was further mentioned that this partnership shall come into being from November 5, 1965. It was also mentioned that Miss Maya was taken as a partner because she had a lot of connections in Punjab and was otherwise going to render great help and assistance to the firm in securing some agencies. Then Miss Maya later on got married to Ramesh Kumar, partner of the said firm, after about six months. On Chandra Kumar's attaining majority, another partnership deed was executed among these partners on January 26, 1966, wherein Shri Chandra Kumar was given the fullfledged status of partner. During the assessment year 1967-68, the firm f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of s. 187(2) of the I.T. Act, 1961, should apply in the facts and circumstances of the case. A special meaning has been given to the expression " change in firm's constitution " and this should include cessation of some partners and the admittance of others, or changes in their respective shares and, since it is a special Act, the firm cannot dissolve automatically as provided in s. 42 of the Partnership Act. Reliance has been placed on Nandlal Sohanlal v. CIT [1977] 110 ITR 170, a Full Bench Decision of the Punjab Haryana High Court. We have considered the whole matter very carefully and also gone through the relevant record and documents annexed with the statement of the case. It is not disputed that the name of the firm remained the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the legal aspect, we have held in D.B. Income-tax Reference No. 25 of 1973, decided on January 30, 1984 [Addl. CIT v. M. K. M. Moosa Bhoy Amin [1984] 148 ITR 89 (Raj)] that the view of the Punjab and Haryana High Court in Nandlal Sohanlal's case [1977] 110 ITR 170 (P H) [FB], has been dissented from by the other High Courts and we have also not followed the view taken by the Punjab Haryana High Court, but have agreed with the view expressed by other High Courts, including Allahabad, Calcutta, Andhra Pradesh, Gujarat and Madras. We may only refer to the latest authority of the Delhi High Court in CIT v. Sant Lal Arvind Kumar [1982] 136 ITR 379. In view of the above discussion, the reference is answered in the affirmative. - - Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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