9911796707
TMI Blog1983 (9) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... against the direction of the Commissioner that the status of the assessee should be taken as an unregistered firm. 2. The facts are as follows. One Shri J. Srinivasan, practising as a chartered accountant, died on 11-5-1975. A partnership deed was executed on 28-12-1975 coming into effect from 12-5-1975 whereby Shri H.V. Gowthama and Shri K.R. Srinivasulu, the erstwhile assistants of Shri J. Srinivasan, became partners of the firm to carry on the profession formerly conducted by the late Shri J. Srinivasan in the name and style of Shri J. Srinivasan. They were each entitled to a profit of 30 per cent. The remaining 40 per cent was allotted to Smt. Sakkubai Srinivasan, widow of the late Shri J. Srinivasan. In addition, the said lady was ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... J. Srinivasan till her sons could carry on the profession in their own right. It was with this view that it was stipulated that the borrowals required by the firm should be made only from her so that the firm would not be burdened with unconscionable debts. It was not denied that Smt. Sakkubai was a competent lady and could look after the general administration of the firm as distinct from the professional activities. The power given to her to sign cheques on behalf of the firm did not make her a partner since any responsible person could have been authorised to sign cheques on behalf of the firm. In the present case, one of the partners had also to sign the cheques. This power of signing the cheques did not make Smt. Sakkubai a partner but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ird judge, who agreed with him, held that Rajendranath, the husband of Vimla Kapur, provided the finances and should also have been considered as a partner and as he had not signed the partnership deed, the firm was not entitled to registration. In the present case, Smt. Sakkubai cannot be considered as a financier of the firm. The firm did not require finances. It is a professional firm. As argued by the learned counsel for the assessee, signing of cheques by Smt. Sakkubai did not make her a partner. In fact, the cheques were to be signed jointly by Smt. Sakkubai and another partner. In the case of Devidas Vithaldas & Co. one of the partners of a chartered accountants firm retired by taking a share of the profits payable every year to him. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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