9911796707
TMI Blog1978 (11) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... Case No. 199/1975 are that the petitioner moved an application under s. 185 of the I.T. Act of registration of a partnership firm consisting of Shri R. K. Bhargava, Shri Raja Ram and Shri Rahul. The partnership was alleged to have been constituted through a partnership deed dated 3rd November, Shri Rahul at this time was admittedly a minor. The ITO by his order dated 2nd March, 1972, refused registration, holding that the said partnership was not a genuine one. Being aggrieved by the said order, the petitioner preferred an appeal to the AAC, who, by his order dated 15th June, 1972, set aside the order of the ITO and held that the partnership was a genuine one. The department preferred an appeal to the Tribunal which allowed the appeal file ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re was no question of continuation of registration and assessed the petitioner as an individual. The petitioner filed two appeals before the AAC, one challenging the refusal of registration and the other challenging the validity of the assessment. The AAC held that the petitioner was entitled to registration, following his order for the earlier assessment year. However, the' other appeal was dismissed by him. The department filed a second appeal to the Tribunal against the order of the AAC by which he had granted continuation of registration. The petitioner-firm. The petitioner also filed cross-objections on the question of the validity of the assessment. The Tribunal allowed the appeal filed by the department on the question of registratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he right to receive profits and liabilities, the right to control the business and various other factors relevant with regard to the question whether a genuine partnership had come into existence or not, held that it was not a case of genuine partnership. Learned counsel appearing for the petitioner has vehemently contended that s. 4 of the Partnership Act defines partnership and s. 6 determines that in holding whether a group of persons is or is not a firm, regard shall be had to the real relation between the parties as shown by all relevant facts taken together. His contention is that what facts and circumstances in a given case constituted a firm is a question of law and this court should direct the Tribunal to draw up a statement of cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Amoluk's case [1962] 44 ITR 511 at page 516 (which was extracted by their Lordships of the Supreme Court from Gheesta's case [1961] 41 ITR 135, 141 (SC)): " ' We must read the order of the Tribunal as a whole to determine whether every material fact, for and against the assessee, has been considered fairly and with due care; whether the evidence pro and con has been considered in reaching the final conclusion; and whether the conclusion reached by the Tribunal has been coloured by irrelevant considerations or matters of prejudice. Learned counsel for the appellant has taken us through the entire order of the Tribunal as also the relevant materials on which it is based. Having examined the order of the Tribunal and those materials, we are u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other material on record it was clear that the books alleged to have been transferred by Messrs. Ranu Bros. (Individual) to Messrs. Ranu Bros. (Contractors) were also not done on the inspection of the firm. Though it was alleged that Raja Ram invested a sum of Rs. 1,000 in the partnership as his capital but no evidence worth the name was produced before the ITO that Raja Ram with a meagre salary of Rs. 150 was able to save the said amount. During the year of account the total withdrawals of Raja Ram for meeting household expenses were only to the tune of Rs. 1,795, i.e., about Rs. 150 per month, though according to the books the share of profit in the name of Raja Ram was credited to the extent of Rs. 15,000. Learned Tribunal has further he ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
