| Case ID |
368bbcbb-8c04-46bc-9da4-4dc611eb76d6 |
| Body |
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| Case Number |
IT REFERENCE No. 124 OF 1964 |
| Decision Date |
Mar 07, 1968 |
| Hearing Date |
Mar 07, 1968 |
| Decision |
The court held that the registration under section 26A is for the 'instrument of partnership' specifying individual shares of the partners, which must be registered for the purpose of the Income-tax Act. The Tribunal was wrong in permitting registration with reference to a portion of the accounting year as registration is an annual process. The case was decided in favor of the revenue, confirming that the firm could not be registered for a portion of the year due to the dissolution of the partnership as per the deed dated January 31, 1958. |
| Summary |
In the case of Commissioner of Income Tax v. Kejriwal Traders, the Calcutta High Court examined the complexities surrounding the registration of a firm under the Income-tax Act, specifically focusing on section 185. The court addressed the legal interpretation of partnership deeds and the implications of partner retirement on the continuity of the partnership. The judgment clarified that registration of a partnership under section 26A requires a valid instrument of partnership that specifies the individual shares of the partners for the entire accounting period. The court ruled that the Tribunal erred in allowing a partial registration, emphasizing that registration must be annual and cannot be split across different partnership structures during the same assessment year. This ruling is significant for legal professionals and businesses navigating partnership registrations and compliance under the Income-tax Act, highlighting the necessity for clear and comprehensive partnership agreements. |
| Court |
Calcutta High Court
|
| Entities Involved |
Not available
|
| Judges |
P.B. Mukharji,
K.L. Roy
|
| Lawyers |
Balai Lal Pal,
N.L. Pal,
P. K. Sen
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Kejriwal Traders
|
| Citations |
1969 SLD 648,
(1969) 71 ITR 463
|
| Other Citations |
Bhausa Ganusa Power & Co. v. CIT [1966] 62 ITR 75 (Bom.),
CIT v. Khetan & Co. [1962] 45 ITR 170 (Bom.),
Dastur Dadi & Co. v. CIT [1963] 49 ITR 554 (Bom.),
N.T. Patel & Co. v. CIT [1961] 42 ITR 224 (SC),
Nidar Mal Jagdish Prasad v. CIT [1959] 37 ITR 349 (Punj.) (FB),
Parekh Vadilal Jivanbhai v. CIT [1967] 63 ITR 485 (SC),
R.C. Mitter & Sons v. CIT [1959] 36 ITR 194 (SC),
Kylasa Sawabhaiah v. CIT [1965] 56 ITR 219 (SC),
Tyresoles (India) v. CIT [1963] 49 ITR 515 (SC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
185
|