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TMI Blog1986 (2) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... a and Miss Veena-were.admitted to the benefits of partnership. The share of the partners and the minors in the profit and loss of the firm were as under : Profit Loss Mrs. P. V. Chellam 10 per cent 25 per cent Mrs. Chellam Narayana 15 per cent 37 1/2 per cent Mr. P. V. Narayana Iyer 15 per cent 37 1/2 per cent Miss Shobha (minor) 20 per cent Miss Chitra (minor) 20 per cent Miss Veena (minor) 20 per cent Miss Shobha had attained majority on 18-1-1975. Form No. 12, i.e., declaration under section 184(7) of the Income-tax Act, 1961 ('the Act') for continuation of registration dated 1-6-1975 was filed in the Income-tax office on 27-6-1975 for the assessment year 1975-76. A fresh deed of partnership was drawn up on 2-5-1975 where in it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he firm was advised the necessity of filing Form No. 11A, the same was filed on 30-3-1976 and there was sufficient reason for the delay in filing of the same. The AAC observed that in the new partnership deed dated 2-5-1975 it was agreed to give retrospective effect from 18-1-1975 even though the option was stated to have been exercised by Miss Shobha in May 1975, that by giving retrospective effect from 18-1-1975, she became a full-fledged partner with effect from 18-1-1975, that from the date onwards she was not only entitled to share the profit but also in the loss, that thus there was a change in the constitution with effect from 18-1-1975, that the deed of partnership should have been executed before 31-3-1975 and that From No. 11A sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear itself. After the said change in the constitution of the firm, no fresh deed of partnership was executed in the relevant accounting year before 31-3-1975 and was filed before 31-3-1975 along with Form No. 11A. Reliance is placed on the decisions in Badri Narayana Kashi Prasad's case and CIT v. Durgaprasad Rajaram Adatiya [1984] 146 ITR 580 (MP). Instruction No. 26 (termed as Circular No. 26 by the assessee) stood modified by Instruction No. 1082 and the assessee is not entitled to registration even as per that also. To this the assessee's counsel replied that although clause 2 was there in the partnership deed dated 2-5-1975, Miss Shobha elected to become a partner only on 2-5-1975 and her rights as a minor continued up to that date. 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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