1983 (3) TMI 89

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..... she was taken as a partner of the said firm. 3. The assessment pertains to the asst. yr. 1979-80. While assessing the said partnership firm for the assessment year under consideration, the ITO and AAC held that the said Smt. R.R. Dhume would not have the source of income, she is only a benamidar of her husband and the partnership firm is not a genuine one. As such, the lower authorities have treated the assessee-firm as an unregistered firm. 4. The assessee firm has submitted that the ITO as well as the AAC have erred in appreciating the facts brought on record including the source of investment of Smt. R.R. Dhume. Both these authorities have also disallowed the claim for bad debt of Rs. 6,881 and thus the assessee had contended that .....

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..... that she knew other partners and their names in the said partnership firm. She has produced a statement explaining the accumulation of Rs. 20,000 by showing four sources of income. The statement of accumulation of Rs. 20,000 shows that Smt. R.R. Dhume was serving as a teacher and she had saved some amount from her salary. The statement further shows that she saved some money every month from the household expenses which was being given to her husband at a rate between Rs. 800 to Rs. 1000 per month. The third source of income as shown in the statement is that she is the only sister amongst her brothers and she used to get gifts in cash from her brothers. The fourth source of income as shown in the statement is that she used to lend friendly .....

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..... nd legal purposes. It would not be correct to infer that because of retirement of Shri R.M. Dhume from the said partnership firm and is looking after the interest of his wife would amount that Smt. R.R. Dhume is a benamidar. 12. Irrespective of these contentions, the question has arisen to consider whether the firm is to be treated as an unregistered firm for the purpose of assessment. Firstly, we are inclined to hold that Smt. R.R. Dhume has fulfilled the requirements of investing Rs. 20,000 in the firm to join as a partner and secondly, she is not a benamidar of Shri R.M. Dhume. If these findings are arrived at, we are further inclined to say that the assessee firm is entitled to be treated as a registered firm. It should be allowed to .....

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