Law:

Section:

Section 184 of the Income-tax Act, 1961 - Firm - Position prior to 1-4-1993 - Assessment years 1973-74 and 1974-75 - ITO refused registration to assessee firm on grounds that deed was insufficiently stamped, and that share of partners was not specified - Whether since deficiency of stamp duty was made good subsequently, it would relate back to date of execution of document and registration could not be denied on ground of said deficiency - Held, yes - Whether, in absence of specification of share of partners in partnership deed, Tribunal was justified in holding that partners had equal share - Held, yes - Whether, consequently, registration was to be granted to assessee firm - Held, yes FACTS The ITO refused registration to the assessee-firm, firstly, on the ground that the deed was insufficiently stamped and, secondly, the share of the partners were not specified. The AAC dismissed the assessee's appeal. Upon further appeal by the assessee, the Tribunal observed that so far as the deficiency in payment of stamp duty was concerned, the same was made good subsequently, as evidenced by the certificate, issued by the Deputy Commissioner of stamps, and the payment of stamp duty must relate back to the date of the execution of the instrument. So far as second ground was concerned, the Tribunal after considering other documents executed between the partners, held that the partners had equal share and accordingly granted registration to the firm. On reference: HELD If the deficiency of the stamp duty is made good it shall relate back to the date of the execution of the document. The Tribunal, therefore, was justified in stating that the instrument was duly stamped when the Deputy Commissioner certified that the deficiency was made good. As to the second ground, it is settled law that two or three documents may be read together for the purpose of determining whether a partnership existed as between the partners. It was true that the shares were not specifically mentioned in the partnership deed. But in the absence of any such specification, the Tribunal was justified in holding that the partners had equal shares. There was no infirmity or illegality in granting…

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