| Case ID |
167c3e4e-f828-444b-b200-c46740cba7d8 |
| Body |
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| Case Number |
IT REFERENCE No. 425 OF 1972 |
| Decision Date |
May 19, 1976 |
| Hearing Date |
|
| Decision |
The court ruled that the assessee-firm was not entitled to the renewal of registration for the assessment years 1963-64 and 1964-65. The ruling was based on the finding that there was a change in the shares of losses due to one of the minors attaining majority, which was not documented in the partnership deed. The court emphasized that proper documentation is essential for determining the distribution of losses among partners, and the absence of such documentation led to the conclusion that the firm did not meet the necessary requirements for renewal of registration. |
| Summary |
This case revolves around the interpretation of the Income-tax Act, specifically sections 184 and 187, in the context of partnership registration. The Allahabad High Court addressed the issue of whether a change in the constitution of a firm, due to one partner attaining majority, constituted grounds for denying renewal of registration. The court found that the partnership deed lacked clarity on how losses were to be shared, which resulted in the ruling against the assessee-firm. The decision underscores the importance of clear documentation in partnership agreements to ensure compliance with tax regulations. This case is significant for tax professionals and firms registering under the Income-tax Act, as it highlights the necessity of precise terms in partnership deeds to avoid disputes regarding the distribution of losses. It serves as a precedent for similar cases where changes in partnership structure occur. |
| Court |
Allahabad High Court
|
| Entities Involved |
Addl. Commissioner of Income tax,
Gauri Vishwanath Dal Mills
|
| Judges |
C.S.P. Singh,
Gopi Nath,
R.M. Sahai
|
| Lawyers |
Deokinandan
|
| Petitioners |
Addl. Commissioner of Income tax
|
| Respondents |
Gauri Vishwanath Dal Mills
|
| Citations |
1977 SLD 1096 = (1977) 107 ITR 274
|
| Other Citations |
Ganesh Lal Laxmi Narain v. CIT [1968] 68 ITR 696 (All.),
Hiralal Jagannath Prasad v. CIT [1967] 66 ITR 293 (All.),
R.C. Mitter & Sons v. CIT [1959] 36 ITR 194 (SC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
184,
187
|