9911796707
TMI Blog1983 (7) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... 30 years and Miss Kanwaljit Kaur daughter of Joginder Singh aged 20 years. The profit sharing ratio of these three partners respectively was 40% 40% and 20%. The assessee filed the prescribed forms within the prescribed time for claiming registration for the asst. yr. 1977-78 and continuation thereof for the immediately succeeding assessment year. When this claim was considered by the ITO, he noted that prior to the constitution of the firm w.e.f. 1st April, 1976 the firm was constituted by S/sh. Joginder Sigh and Balwant Singh having profit sharing ratio at 60% and 40% respectively. After perusal of the instrument dt. 1st April, 1976, he draw an inference that in the absence of any capital contribution by M/s Kanwaljit Kaur, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ITO wanted her to be produced and that she had originally gone there for visiting certain relatives and to get some training in hosiery designing. However, latter on, she got married there and settled in England. The AAC found that the only ground on which the ITO had refused registration to the assessee firm was that Miss Kanwaljit Kaur was not produced before him for examination. Since she was out of India, she could not be produced. Therefore, that could not be a basis for refusing registration to the genuinely constituted firm. The AAC also took note of the fact that the assessee had given clear indication as to the type of the job that Miss Kanwaljit Kaur as partner of the firm was looking after in the conduct of the business of the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It should have been verified from the parties or from the employees doing work with the assessee. However, as pointed out by the AAC, no effort was made by the ITO in this respect. The ITO concentrated only on the examination of Miss Kanwaljit Kaur. However, this could not be done because the previous year relevant to the year 1977-78 was financial year 1976-77 and in the next year it was the financial year 1977-78 and it is clear that the assessment proceedings were going on in the year 1980 when the ITO wanted the lady partner to be produced. It has not been controverted that by that time Miss Kanwaljit Kaur was not in India and that though she had gone out of India with the intention to return, she made better of it by finding a husband ..... X X X X Extracts X X X X X X X X Extracts X X X X
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