1984 (3) TMI 128 - AT - Income Tax

Summary

Issues:
1. Rejection of registration to the firm for the assessment year 1976-77.
2. Direction to allow registration to the firm for the assessment year 1974-75.

Analysis:

1. Rejection of Registration for 1976-77:
The Income Tax Officer (ITO) rejected the registration claim of the assessee for the assessment year 1976-77 based on the age discrepancy of two partners shown as minors in the partnership deed. The ITO considered educational certificates showing them as minors, disregarding discharge certificates and horoscopes indicating majority at the time of partnership formation. The Tribunal set aside the order of the Appellate Authority Commissioner (AAC) for not considering affidavits supporting the partners' majority. The AAC, in the subsequent order, accepted hospital discharge certificates and birth certificates from the Calcutta Corporation as proof of majority, directing the ITO to allow registration.

2. Direction to Allow Registration for 1974-75:
For the assessment year 1974-75, the ITO rejected registration citing minors shown as major partners in the partnership deed. The Tribunal directed the AAC to consider affidavits of fathers confirming majority, which the AAC accepted along with hospital discharge certificates and birth certificates. The revenue appealed, arguing the AAC erred in accepting the evidence and not following the Tribunal's directions. The assessee contended the evidence provided was valid, distinguishing the case from previous legal precedents. The Tribunal found the hospital certificates and affidavits as contemporaneous evidence, differing from the legal principles cited by the revenue, ultimately allowing registration for both years.

In conclusion, the Tribunal allowed the assessee's appeal for the registration of the firm for both assessment years, 1974-75 and 1976-77, based on the acceptance of hospital discharge certificates and birth certificates as valid proof of majority, contrary to the revenue's arguments relying on legal precedents.