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TMI Blog1982 (7) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Income-tax Act, 1961, when the minor, who had been admitted to the benefits of the partnership, attains majority and does not opt out ? (2) Whether the cancellations of the assessment order was in law valid and justified in the absence of any order cancelling the firm's renewal of registration ? " The Income-tax Appellate Tribunal has accordingly drawn up a statement of the case and has made the present reference to this court. Briefly stated, the facts, as appear from the statement of the case, are that the assessee-firm came into existence with effect from 1st of April, 1964, under a partnership deed executed on the same date. The firm consisted of Sarvashri Deshrath Lal Agarwal, Surendra Kumar Agarwal and Narendra Kumar Agarw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich he had been admitted to the benefits of the partnership at the time of execution of that partnership deed. According to him the firm should be reconstituted with effect from 1st of July, 1966, and that it was not entitled to the continuation of its registration. In the result he" vide his order dated 29th of December, 1970, cancelled the assessment made in the case of the assessee in its capacity as a registered firm and directed the ITO to make a fresh assessment treating the assessee as an unregistered firm. It may, at this stage, also be mentioned that the proceedings of cancellation of continuation of registration already granted to the assessee-firm for the year 1968-69 had not been initiated before the Addl. Commissioner passed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... well as their shares ought to be such as is evidenced by the instrument of the partnership. For purposes of the I.T. Act, a minor admitted to the benefits of the partnership is to be deemed to be a partner, entitled to all the benefits conferred on a partner by the Act. Thus, when an instrument of partnership evidences a constitution indicating that apart from the partners, a minor has been admitted to its benefits the instrument of partnership will be deemed to evidence, for purposes of the I.T. Act, that the constitution of the firm was as if the minor was also a partner. There can, therefore, be no change in the constitution of the firm by the mere fact of a minor admitted to the benefits of a partnership becoming major and electing to r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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