Firm

Section 4 of the Partnership Act, 1932 does not require that while entering into partnership agreement every partner must have to contribute equal share of capital or have a voice in the management of business proportionate to his capital contribution

Partnership deed executed in presence of witnesses cannot be discarded by the Assessing Officer merely on whims and surmises.

Penalty-Firm-Dissolution and reconstitution Business not discontinued-Penalty whether can be imposed on firm after reconstitution

Source of power whether S. 44

Reference Comprehensive question-Inquiry into matters not raised or argued before Tribunal-Whether permissible-Indian Income-tax Act, 1922, Ss. 26, 44 & 66.

Firm-Renewal of registration-Application for Registration refused for earlier year-Partnership deed silent about liability for a portion of loss-Whether firm entitled to renewal of registration-Income-tax Act, 1961, S. 184(7).

Income-tax-Firm - Dissolution - Valuation of assets by expert and allocation of shares to partners on basis of valuation-Actual cost to partner-Loss-Loss determined in last assessment of firm as a loss to be carried forward-Whether final and conclusive in assessment of partner in subsequent year-Enquiry as to whether the loss contains unabsorbed depreciation allowance Whether permissible-Indian Income-tax Act, 1922, Ss. 10(2)(vi), (5) & 24(2).

Appeal - Limitation – Order served on one partner-Appeal by another partner-Time taken by appellant for obtaining copy of order-Whether can be excluded-Indian Income-tax Act, 1922, Ss. 30(1), second proviso & 67-A.

Firm - Registration of firm-Excise licensee entering into partnership-Other partner subscribing no capital but supervising business-Whether partnership illegal-Indian Income tax Act, 1922, S. 26-A

Bihar & Orissa Excise Act, 1915, Ss. 22 & 23.

Best Judgment-Regisiration firm refused Validity-Partner signing partnership deed as karta of H. U. F. No H. U. F. in existence-Whether he becomes partner in individual capacity.

Firm-Registration of- Minor partners-Whether admitted as full partners or only to benefits of partnership -Construction of deed - Guiding principles-Indian Income-tax Act, 1922, S. 26-A.

Income-tax-Firm-Registration-Death of partner-Son continuing as partner-Application for renewal signed by son-Whether maintainable-Effect of change in constitution-Indian Income-tax Act, 1922, S. 26-A-Indian Income-tax Rules, 1922, r. 6(2).

Income-tax-Firm-Purchase of immovable property by firm Transfer to individual partners-Whether can be effected by entries in books of account-Whether instrument in writing necessary Partners of firm-Whether can be assessed as co-owners in respect of income from firm's property-Indian legislation based on English taw-Whether decisions of English Courts can be sought for guidance and help-Income-tax Acct, 1922, S. 9(3)-Partner ship Act, 1932, Ss. 14, 15, 19, & 22-English Partnership Act, 1890, S.22-Registration Act, 1908, S. 17(1)(b).

Firm-Unregistered firm-Assessment of firm after assessment of partners-Legality.

Firm Discontinuance after assessment-Recovery of tax from former partners - Notice of demand against partner without fresh order of assessment-Notice against one partner alone-Legality-Time limit for service of notice-Indian Income-tax Act, 1922, Ss. 29 & 44.

Registration Failure to make return and produce accounts Application for registration Maintainability Power to make best judgment assessment and refuse registration Indian Income tax Act, 1922, Ss. 22(4), 23(4) & 26-A.

Firm Partnership formed before accounting year-Deed executed during accounting year-Whether deed takes effect from the beginning of accounting year-Indian Income-tax Act, 1922, S. 26-A.

Firm Firm-Registration-Deed specifying two partners - Each partner a smaller firm consisting of two individuals-Shares o) firm alone set out in deed-Deed whether should be, registered-Precedents-Appellate Tribunal-Binding nature of decisions of High Court-Indian Income-tax Act, 1922, S. 26-A-[Chhotalal Devchand v. Commissioner of Income-tax (1958) 34 I T R 351 dissented from.]

Firm Renewal of registration-Partnership for fixed period-Application for renewal of registration after expiry of period-Whether can be granted-Necessity fir operative instrument of partnership-Indian Income-tax Act, 1922, S. 26-A-Income-tax Rules, 1922, rr. 3 & 6.

Whether can be granted-Necessity for operative instrument of partnership-Indian Income-tax Act, 1922, S. 26-A-Income-tax Rules, 1922, Rr. 3 & 6.

Bonus to employees of firm paid by partner-Whether allowable from partner's share in income of firm-Income-tax Act, 1922, Ss. 10(2), 16(1)(b) & 23(S)(a), (6).

Firm -Partnership between coparceners of Hindu undivided family representing the family with strangers-Validity-Nature of such partnership-Whether such partnership can be registered-Indian Income-tax Act, 1922, S. 26-A Indian Income-tax Rules, rr. 2 to 6-B-Indian Partnership Act, 1932, S. 5.

Omission to divide or credit all divisible profits of accounting year Refusal of registration Legality Indian Income tax Act, 1922, S. 26-A.

Firm Firm-Registration-Smaller firm shown as partner of larger firm-Major members of smaller firm signing deed of partnership

Recitals in deed indicating shares of partners in smaller firm and the fact that minors were admitted to benefits of partnership of that firm-Larger firm whether entitled to registration-Indian Incometax Act, 1922, S. 26-A-Indian Income-tax Rules, 1922, r. 2

[Kylasa Sarabhaiah v. Commissioner of Income-tax (1962) 46 I T R 470 reversed.]

Firm Firm-Registration-Application for registration-Provision prescribing different periods for different kinds of firms-Whether discriminatory-Indian Income-tax Rules, 1922, r. 2-Validity Constitution of India, Art. 14.

Firm Firm-Registration-Gift of assets of business by Muslim-Gift effected by book entries-Whether valid-Subsequent formation of firm-Firm whether entitled to registration-Indian Income-tax Act, 1922, S. 26 (a).

Firm Firm-Registration Partner being benamidar for third person, or karta of family, or entering into sub-partnership- Whether affects validity or reality of firm-Right of firm to registration Share infirm held by joint family-New partnership deed allotting separate shares to members-Whether effects division of status. Partition for reducing income-tax-Validity-Indian Income-tax Act, 1922, S. 26-A-Madras Agricultural Income-tax Act, 1955, S. 27.

Firm Firm-Share held by member of Hindu undivided family as individual-Declaration to treat share as property of Hindu undivided family and transfer of share to Hindu undivided family-Fresh partnership as karta-Validity of transfer

Applicability of section 16(3)(6) or (c)

Indian Income-tax Act, 1922, S. 16(3)(6) & (c).

Firm Firm-Registration when can be granted-Minors-Partners responsible for losses-Firm whether can be registered-Indian Income-tax Act, 1922, S. 26-A-Partnership Act, 1932, S. 30.

Partnership with wife and brother-in-law-Application for registration-Genuineness of firm-Whether question of fact-Finding based on mere suspicion-Reference to High Court-Income-tax Act (XI of 1922), Ss. 26-A and 66 (1).

Application for registration Profits of firm not divided or credited in the separate accounts of partners but taken to reserve fund Whether ground for rejecting registration Income tax Act (XI of 1922), S. 26 A Income tax Rules, 1922, r. 6.

Firm-Entity apart from persons constituting it-Never­theless personality does not necessarily continue so long as business of firm continues. Before the Board it was argued that under the Indian Partnership Act, 1932, a firm is recognized as an entity apart from the persons constituting it, and that the entity continues so long as the firm exists and continues to carry on its business. It is true that the Indian Partnership Act goes further than the English Partnership Act, 1890, in recognizing that a-Arm may possess a personality distinct from the persons constituting it ; the law in India in that respect being more in accordance with the law of Scotland, than with that of England. But the fact that a firm possesses a distinct personality does not involve that the personality continues unchanged so long as the business of the firm continues. The Indian Act, like the English Act, avoids making a firm a corporate body enjoying the right of perpetual succession. The agreement of the 7th December 1907, was made between the company and four named individuals, and when all of those four individuals had ceased to be members of the firm, there was no privacy between the company and the firm as it then existed