Law: Income Tax Act, 1922

Section: 26A(1),2(14),2(6B)

Law: Income Tax Act, 1922

Section: 26A(1),2(14),2(6B)

Law: Partnership Act, 1932

Section: 30(1)

Income-tax Act, 1922 -- Section 26A(1) (after amendment in 1965) Partnership deed -- Signature of partners, whether condition precedent for claiming registration -- Held yes -- Failure of partners to sign the deed -- Whether defect of technical nature -- Held no -- Whether renders the deed inoperative and invalid in law -- Held yes -- Carbon copy of the deed bearing signatures of partners at places meant for witnesses -- Whether ineffective -- Held yes -- Word " Instrument '', meaning of -- Corresponding Sections: Income-tax Ordinance, 1979 -- Section 68(1) -- ORDER The order was passed by MUHAMMAD MAZHAR ALI, Judicial Member} ---- Now we shall take up the appeal against the refusal of registration of firm under Section 26A of the Income Tax Act. The facts, in brief, relevant to this appeal are that a Partner- ship Deed dated 1st July, 1970 was drawn and typed out on a non-judicial stamp paper of Rs. 50 which was purchased on 30th June, 1970. The assessee submitted the application for registration of firm under Section 26A of the Income Tax Act, accompanied by a copy of the partnership deed bearing the signatures of the two major partners, namely, Mr. A and Mr. I ... at the place meant for the signatures of the witnesses. The Income Tax Officer called upon the assessee to produce the original partnership deed and the same was actually produced before him. He however, noted that it did not have signatures of the partners. The Income Tax Officer, therefore, concluded that there was no evidence to establish the contractual relationship between two adult partners of the assessee firm as they had not signed the partnership deed. According to him, the firm could not come into existence merely by purchasing the stamp paper and writing down certain things thereon. The deed may be effective only when it was signed by the partners in the presence of witnesses. In view of these facts he held that "no deed was executed between the so-called partners' and consequently, as already stated, completed the assessment by treating the assessee-appellant as an Association of Persons for the assessment year under appeal viz : 1971-72. Mr......... learned counsel for the appellant…

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