9911796707
TMI Blog1983 (4) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... question of law : " Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in directing the Income-tax Officer to allow registration to the assessee ? " The reference relates to the assessment years 1971-72 and 1972-73. The assessee-firm was constituted by a deed of partnership executed on 10th November, 1961, and it consisted of four ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the Tribunal was in error in granting continuation of registration for the assessment years 1971-72 and 1972-73. The Tribunal has, however, relied upon two circulars, one issued by the CBR and the other by the CBDT. The first circular is dated 3rd January, 1962. It is to the effect that where there is no doubt about the genuineness of a partnership, registration need not be refused simply b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... partnership attained majority and elected to be a partner of the firm, there was a change in the constitution of the firm and the partnership was not entitled to continuation of registration. This view was taken in Ganesh Lal Laxmi Narain v. CIT [1968] 68 ITR 696 (All) and Ram Narain Laxman Prasad v. ITO [1972] 84 ITR 233 (All). It was to get over this view that the Board issued the second circul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that a minor admitted to the benefits of the partnership has become a partner on attaining majority. It will be refused on the ground that the eventuality of the minor becoming a partner on attaining majority was not foreseen in the deed of partnership and it does not provide for the distribution of profits and losses on the minor attaining majority. This view does not go counter to the circula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch an eventuality and does not specify the shares of the partners in losses after the minors became partners on attaining majority. It was on this basis that the refusal of continuation of registration was upheld in the reference relating to the same firm for the assessment years 1967-68, 1968-69 and 1969-70. The same view must be taken in this reference which relates to the assessment years 1971 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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