9911796707
TMI Blog1984 (2) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed by the Commissioner of Agricultural Income-tax under s. 35 of the Karnataka Agricultural Income-tax Act, 1957. The petitioner-assessee is a partnership firm owning coffee estates. For the assessment years 1977-78 and 1978-79, the assessee was granted renewal of registration by the Agrl. ITO. The assessee-firm consists of six partners and is evidenced by a deed of partnership, dated May 21, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Agrl. ITO, and was granted renewal as prayed for. So also for the year 1978-79, the renewal was granted. The Commissioner thereupon initiated action under s. 35 of the Act and set aside the orders of the Agrl. ITO granting registration for the two years in question and directed the assessing officer to redo the assessment for the said two years in the status of an unregistered firm. The Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the Commissioner made the order concerned in these petitions. It is unfortunate that that fact was not noticed by the Commissioner when he passed the order. The Full Bench, overruling the earlier decision relied upon by the Commissioner, has held (p. 871) : " Where a minor admitted to the benefits of a partnership attains majority, and elects to be a partner of the firm, there is no chang ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consequence when he elects to become a full-fledged partner. When the terms of the deed provide for the minor to exercise his option to continue as full-fledged partner, we do not think there was any necessity to have a new deed of partnership. What is brought about from the above events is a change in sharing the losses by the partners and not in the constitution of the firm or in the ratio of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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