Law:

Section:

Section 184 of the Income-tax Act, 1961 [Corresponding to section 26A of the Indian Income-tax Act, 1922] - Firm - Position prior to 1-4-1993 - Assessment year 1960-61 - Stamp paper on which deed of partnership was written was purchased only on 23-3-1959 - Although application for registration mentioned date of admittance to partnership as 1-3-1959 yet it was not established that partnership was as a matter of fact created on that date - Tribunal, thus, refused registration of firm for relevant assessment year - Whether, on facts, Tribunal was justified in refusing registration to assessee-firm - Held, yes FACTS The stamp paper on which deed of partnership was written was purchased only on 23-3-1959 as could be seen from the endorsement of the stamp paper vendor. In the application for registration of the firm, the date of formation of the partnership was mentioned as 1-3-1959. The ITO refused registration of the firm. On appeal, the Tribunal confirmed the order of the ITO holding that deed of partnership could not have been executed on 1-3-1959, i.e.22 days prior to purchase of the stamp paper itself. On reference: HELD In the instant case, it was not possible to say that the partnership was factually in existence during the whole of the accounting year. The accounting period was the twelve months from 1-4-1959 to 31-3-1960. The deed of partnership was executed on some date between 23-3-1959, the date on which the stamp of paper was purchased, and 29-4-1959, the date on which the application for registration was filed. The exact date was unknown and no attempt had been made to establish the same. If the deed of partnership was executed subsequent to 1-4-1959, then the partnership would not have been in existence for the whole of the accounting period, namely, 1-4-1959 to 31-3-1960, and the firm would not be entitled to registration under section 26A of the 1922 Act. the application for registration mentioned the date of admittance to partnership as 1-3-1959, and as it had not been established that the partnership was, as a matter of fact, created on the date, the appellate Tribunal was right to affirm the refusal of registration by the ITO. Note : Decision was…

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