Law:

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Section 184 of the Income-tax Act, 1961 - Firm - Position prior to 1-4-1993 - Partnership deed was executed on 1-10-1961 on a stamp paper purchased on 20-10-1961 - When discrepancy was noted, mistake was rectified by rectification deed - Whether inconsistency in dates might be relevant for purpose of finding out genuineness or otherwise of partnership but if partnership was genuine and inconsistency in dates was due to mistake, document itself could not be said to be invalid for that reason - Held, yes [Matter remanded back to reconsider matter afresh and dispose of same after giving finding regarding genuineness of firm] FACTS The assessee firm applied for registration under section 184. But it was, found that though the document was purported to have been executed on 1-10-1961, the stamp papers on which the document had been written bore the date 20-10-1961. When this discrepancy was noted, a rectification deed dated 19-1-1965, was executed by the partners. The rectification deed was also produced before the ITO. The ITO refused registration on the ground that the document dated 1-10-1961, written on the stamp papers bearing date 20-10-1961 was ab initio void. The AAC and the Tribunal affirmed the order of the ITO. On reference : HELD It could be that the difference in dates could lead to a suspicion that there was no genuine partnership and that the parties wanted to make it appear that by this document there had been a genuine partnership while there was none. Inconsistency in the dates may be relevant for the purpose of finding out the genuineness or otherwise of the partnership. But, if the partnership was genuine and the inconsistency in the dates was due to a mistake as contended by the assessee, the document itself could not be said to be invalid for that reason. It could be that though the document was purported to have been written on 1-10-1961, it would become effective only from 20-10-1961, when it was executed by the parties after the document had been written on the stamp papers. The Tribunal, therefore, was not right in holding that the document itself was invalid for the reason that the date of the document preceded the purchase of the stamp…

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