Law:

Section:

Income-tax Act, 1922 -Section 26A(1) (after amendment in 1965) ----Firm -Registration -Partnership deed -Creation of firm by virtue of instrument of partnership in writing -Whether necessary for purpose of registration -Held no -Instrument of partnership executed in writing before end of the previous year relevant to the assessment year -Whether registration allowable for the whole year -Held yes -Question whether the firm was created orally or had come into existence from before the date of the instrument or not -Whether material for purposes of registration -Held no -- JUDGMENT The judgment of the court was delivered by MUHAMMAD AKRAM J.---This is a reference under Section 66(1) of the Income-tax Appellate Tribunal (Peshawar Bench), Peshawar at the instance of the assessee-petitioner. It arises out of an order dated the 19th of January, 1970 passed by the Tribunal in Income-tax Appeals Nos. 788 and 789 of 1963-64 and ITA Nos. 1457 & 1458 of 1966-67 in respect of the two assessment years 1962-63 to 1965-66. 2. The facts are that the firm of M/s. Mistri Ata Muhammad Colliery, Proprietors, Dandot consisted of two partners, Babu Hassan Muhammad the son, and Mistri Ata Muhammad, the father, in equal shares. It was duly registered for the purposes of the Income-tax Act till the assessment year 1961-62. But Mistri Ata Muhammad, the father, died on the 31st July, 1961. After his death on the 28th of January, 1962 an instrument of partnership was executed between Babu Hassan Muhammad and Mst. Begum Bibi widow of late Mistri Ata Muhammad to carry on the business of the firm in partnership with effect from the 1st of October, 1961. According to the recitals in this document Babu Hassan Muhammad was in need of a partner to finance the business and Mst. Begum Bibi, his own mother, agreed to invest Rs. 60,000 in the business in partnership with him. They, therefore, formed this partnership and its terms and conditions were afterwards reduced into writing. 3. In these circumstances, on 27th of August, 1962, the assessee-firm applied for its registration under Section 26A of the Act for the assessment year 1962-63 on the basis of the said partnership deed. But on the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492