Law:

Section:

Section 185 of the Income-tax Act, 1961 - Firm - Position prior to 1-4-1993 - Assessment year 1963-64 - Application filed on 12-3-1963 for registration of firm was rejected on ground that original partnership deed was tampered with by substitution of one page which provided for closing of accounts of firm on 31-3-1963 - Whether when substituted page was in partnership deed on 12-3-1963, and there was no evidence to show that accounts of partnership were closed on any date prior to 31-3-1963, rejection of application for registration was not justified - Held, yes FACTS By an application dated 12-3-1963, the assessee applied to the ITO for registration of the firm under section 185. The ITO refused registration on the ground that the original partnership deed was tampered with by the substitution of one page which provided for the closing of the accounts of the firm on 31-3-1963. The AAC confirmed the order of the ITO. The Tribunal held that the substitution by itself would not disentitle the assessee for registration. The Tribunal, on a consideration of the evidence before it, came to the conclusion that the partners even as per the original understanding had their accounts closed only on 31-3-1963, and that the accounts of the firm produced before it did not disclose any sign of tampering of the accounts showing that the accounts were actually closed for the first time on any date prior to 31-3-1963. On reference : HELD Since it was not stated that the application was not accompanied by the original instrument and a copy thereof as required by section 184(5). One should presume that the original instrument and a copy thereof was produced along with the application on 12-3-1963. If that was so, even on 12-3-1963, the stipulated page was in the partnership deed. There was no evidence to show that the accounts of the partnership were closed on any date prior to 31-3-1963. The result was that the substituted page also had come into existence during the period of the accounting year. On these findings, the Tribunal was right in holding that the rejection of the application for registration could not be sustained. Note : The case was decided in favour of 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