Law:

Section:

Section 185, read with section 256 of the Income-tax Act, 1961 - Firm - Position prior to 1-4-1993 - Assessment year 1973-74 - Firm consisted of seven partners two of whom were minors admitted to benefits of partnership and two were ladies described as sleeping partners - ITO refused registration to firm on ground that minors and ladies were benamidar of 'N' - Tribunal found that said partners were not proved to be benamidar of 'N' and, therefore, directed ITO to allow registration to assessee-firm - Whether finding recorded by Tribunal was on pure question of fact, and therefore, no question of law arose from Tribunal's order - Held, yes FACTS The firm consisted of seven members two of whom were minors and two were ladies. The minors were stated to have been admitted to the benefits of the partnership and the ladies were described as sleeping partners. Both these sets of partners neither contributed any person skill nor capital. On these facts, the ITO held that the said partners were benamidars of 'N' and declined registration. This order was affirmed by the AAC. The Tribunal reversed the finding of the ITO and directed him to grant registration to the assessee-firm. The application of the revenue under section 256(1) was also declined by the Tribunal. On application under section 256(2): HELD The Tribunal held that Explanation to section 185(1) was not attracted as the said partners were not proved to be benamidars of 'N'. The finding was thus based on a pure question of fact and did not involve the determination of any question of law. Note: The case was decided in favour of the assessee. CASE REVIEW K.D. Kamath and Co. v. CIT [1971] 82 ITR 680 (SC) followed and relied upon. CASES REFERRED TO K.D. Kamath & Co. v. CIT [1971] 82 ITR 680 (SC). Ashok Bhan and Ajay Mittal for the Applicant. D.K. Gupta and Hemant Kumar Gupta for the Respondent. JUDGMENT S.P. Goyal, J.-The alleged assessee claimed registration of the firm, M/S. Mittal Engineering Co., for the assessment year 1973-74 on the basis of the partnership deed dated September 24, 1972. The firm consisted of seven members two of whom were minors and two were ladies. The minors were stated to have been…

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