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1965 (4) TMI 18 - SC - Income TaxWhether the assessee, Mohandas Sadhuram, can be granted registration under section 26A of the Indian Income-tax Act, on the basis of the partnership deed made on April 1, 1952, for the assessment year 1953-54 and on the basis of the said deed read with the supplementary deed on April 1, 1953, for the assessment year 1954-55? Held that:- The partnership deed, reasonably construed, only confers benefits of partnership on the two minors and does not make them full partners. The guardian has agreed to certain clauses in order to effectuate the decision of the major members to confer the benefits of the said partnership to the minors. Accordingly, we hold that the income-tax authorities should not have declined to register the firm. We may mention that the supplementary deed dated April 1, 1953, has not been included in the statement of the case, but it is common ground that nothing turns on any of the clauses in the supplementary deed. Accordingly, agreeing with the High Court, we hold that the firm is entitled to be registered under section 26A of the Income-tax Act, and the answer to the question referred is in the affirmative. Appeal dismissed.
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