| Case ID |
0a5d6ec8-c2bd-4d1c-91a5-01cf9b4cd4df |
| Body |
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| Case Number |
IT REFERENCE No. 18 OF 1975 |
| Decision Date |
Jul 08, 1977 |
| Hearing Date |
|
| Decision |
The court held that the application for registration of the partnership firm did not fulfill the requirements as per section 184(1)(i) and (ii) of the Income-tax Act, 1961. The memorandum of agreement executed by the remaining partners was not considered a valid partnership deed, as it merely indicated changes in the constitution of the firm without establishing a new deed. The application for registration was thus rejected, affirming the previous decisions by the Income-tax Officer, Appellate Assistant Commissioner, and the Tribunal. The case was ultimately decided against the assessee, confirming that the partnership as constituted was not valid for registration under the relevant sections. |
| Summary |
This case revolves around the registration of a partnership firm under the Income-tax Act, 1961. The firm, Jain & Co., initially consisted of five partners but faced a challenge when one partner retired. The remaining partners executed a memorandum of agreement to modify the partnership terms. However, the Income-tax Officer found that the original partnership deed had effectively dissolved upon the retirement of the partner, and a valid new deed was not executed. The case highlights the importance of adhering to the legal requirements for partnership registration, including the necessity for a valid instrument of partnership and clarity on the shares of the partners. The court emphasized that a mere memorandum of agreement cannot substitute for a formal deed of partnership. This case serves as a critical reference for understanding partnership law in the context of tax registration, illustrating the legal complexities involved in partnership modifications and registrations. |
| Court |
Gauhati High Court
|
| Entities Involved |
Not available
|
| Judges |
Baharul Islam,
Ibotombi Singh
|
| Lawyers |
S.L. Sharma,
J.P. Sharma,
G.K. Talukdar,
D.K. Talukdar
|
| Petitioners |
Jain & Co.
|
| Respondents |
Commissioner of Income tax
|
| Citations |
1978 SLD 903,
(1978) 115 ITR 68
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
185,
184
|