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TMI Blog1980 (6) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... red the following common question in relation to the assessment years 1972-73 and 1973-74: " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee-firm was not entitled to registration under the Income-tax Act, 1961 ? " The assessee was a registered partnership firm carrying on business under the name " Bhagwanchand Seremul Jain and Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder : Ps. Bhagwanchand Hummatmul 0.25 Parsmal Himmatmul 0.25 Seremul Ottaji 0.30 Mohanlal Seremul 0.15 Charity 0.05 --------- Total 1.00 --------- Losses, if any, will be shared in the same ratio. At the end of the year (accounting year), the profit or loss of the year shall be credited or debited to the partners' accounts in their respective shares." The view tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the status of a registered firm and directed the ITO, Hospet, to redo the assessment in the status of an unregistered firm. Feeling aggrieved by this order, the assessee preferred appeals to the Tribunal. In the course of its order, the Tribunal was of the view that the charity as such was not a partner, but it came to a conclusion that, in the event of loss, it was not at all clear as to how i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o as the profits would have been shared by the four partners. The allocation of 5 paise in a rupee to charity is not by way of allocation of a share to a partner, but only distribution of the profits providing for a reservation in favour of the charity to that extent. The Commissioner, in our opinion, was, in error in interpreting the judgment of the Allahabad High Court in Manohar Das Kedar Nath ..... X X X X Extracts X X X X X X X X Extracts X X X X
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