9911796707
TMI Blog1985 (2) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... ary to briefly summarise the facts. 3. As per the assessee, the firm started in November 1978 and the relevant accounting year ended on 31-12-1979. On 7-3-1979, stamps were purchased for the execution of the necessary partnership deed and though the partnership deed was executed on the said stamps purchased on 7-3-1979, the date of execution was mentioned as 1-11-1978, originally. In the said deed, originally 10 partners were mentioned which included one Shri Kulvinder Kumar, son of Shri Purshotam Lal, serially numbered as partner No. 3 and the said partnership deed was also signed by the said minor Shri Kulvinder Kumar, so much so that on the first page of Form No. 11 of the Income-tax Rules, 1962 which was submitted before the ITO with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s relying on the order of the two lower authorities, submitted that it is a strange case entirely covered by the Kerala High Court decision in the case of Malankara Timbers v. CIT [1967] 66 ITR 200, which goes against the assessee. 7. After taking into consideration the rival submissions and going through the facts on record carefully, we are unable to accept the contention of the assessee regarding grant of registration because of the single fact which we found from record that originally when the firm was started on 1-11-1978 minor was taken to be a partner. As is apparent from the execution of deed which was produced on stamp paper dated 7-3-1979 and in which date of execution was shown as 1-11-1978 and minor was not only shown to be a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... my name was mistakenly included as a partner, for which I was not legally entitled'. It is apparent that contents of the explanation filed before the Commissioner and affidavit are contradictory. This fact is clear that originally, may be orally, when this firm came into being on 1-11-1978, Shri Kulvinder Kumar was taken to be a partner and it is apparent from the subsequent conduct when the deed in question was planted under the date 1-11-1978 on a stamp which was purchased subsequently on 7-3-1979. This is trite law so far as we are sitting in Chandigarh are concerned that partnership has to be for the whole year and deed should be executed within the accounting year. In the instant case, the partnership which came forward for registrati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... written instrument, (b) the existence of a written instrument during the accounting year specifying the individual shares of the partners. On the basis of these two principles, their Lordships observed that if these requirements are satisfied then the firm has to be registered for the assessment year to which the accounting year corresponds. It is immaterial when during the accounting year the instrument is executed. When we apply this ratio, we find that in the instant case, the firm which is seeking registration on the basis of partnership deed though executed within the accounting year was not the same, right from the beginning, i. e., from 1-11-1978 to 7-3-1979 or any date after that when the deed was executed though it is mentioned to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be of assistance to the assessee. 9. Then the reliance on Jagan Nath Pyare Lal's case again is misplaced. This was for the purpose that in case a deed was not signed, the assessee should have been granted an opportunity and the same could not be fatal. In the instant case, it is quite on a different count that we have rejected the assessee's claim. We have already held above that the two principles enunciated by the Punjab High Court in the case of Niadar Mal Jagdish Parshad were not fulfilled and the third case on which the learned counsel for the assessee relied on Dwarka Prasad Chiranjilal's case actually there is no case on page 3. However, there is a case on page 1 that of Gestetner Duplicators (P.) Ltd. v. CIT [1979] 117 ITR 1 (SC) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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