9911796707
TMI Blog1984 (9) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... nced from 1st April, 1978. The partnership is registered with the Registrar of Firms on 27th July, 1978. The business of the partnership consist of doing job work of water porting terrace, tanks etc. relating to civil construction work. There are no books of accounts in the form of cash book., ledger, etc. But there is a bank account, where all the receipts are deposited and from which withdrawals are made as much for incurring expenses for the business as for dividing the profits amongst the partners in equal proportion. Although there are no books of accounts kept in the form asked for by the ITO, the return was accompanied by a statement of allocation of profits as prepared by the assessee itself. For each of the Years the assessee filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t it and it is for the ITO to prove that the actual division has not been made in the manner shown in the statement accompanying the return. The ITO has not done any such thing. The ITO has also not given any reason why he considers the firm as not genuine. 4. Elaborating his arguments further, Shri Desai invited our attention to certain case law. In particular, he referred to Kerala judgment in the case of V.K. Kurien K.P. George vs. CIT (1967) 63 ITR 675. (Ker). He also referred to M.P. judgment in CIT vs. Madanlal Chhaganlal (1963) 50 ITR 477 (MP) and Allahabad judgment in (1972) 86 ITR 203 (All) (Chitra Cinema vs. CIT). Accordingly, it was submitted that the assessee is entitled to the benefit of registration. 5. In reply, the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show that the allocation shown in the return is not correct and was never actually acted upon. The fact that the ITO rejected the assessee estimate of profit and made a further addition of 1per cent also does not warrant a conclusion that such profits have been divided in a manner different from that the mentioned in the partnership deed. When statements are made in the return, the burden would shift on the Revenue to show that such statements are not true. The Supreme Court judgment, relied upon by the ld. departmental representative, R. is not applicable to the facts of the case because in that case before the Supreme Court there was definite evidence that certain profits outside the books were not actually divided amongst all the partne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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