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2012 (7) TMI 10 - HC - Income TaxPartnership firm doing wholesale liquor business - rejection of allowance claimed under the act on ground of same being assessed as Association of Persons - Revenue contended that since only one of the partners was holding a license to carry on the liquor business, in absence of who, firm could not have run the business hence the same could be assessed as AOP - Held that:- Since the partnership deed is reconstituted subsequent to the amendment of Income-tax Act w.e.f. 1-4-1993 the AO ought to have discussed the facts of the present case in the light of law laid down in the case of CIT vs Rangila Ram (2000 (8) TMI 11 (SC)) and also in the light of provisions of Karnataka Exercise (General Conditions Rules), 1967. Further, AO has also not explored whether there was transfer of license of one partner to carry on the business of liquor in favour of the firm. Hence, matter is remitted back to the AO for fresh assessment in the light of above observations.
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