TMI Blog1999 (9) TMI 121X X X X Extracts X X X X X X X X Extracts X X X X ..... rm as registered under s. 183(b) of the IT Act, 1951?" 2. The assessee-firm engaged in the business of commission agent and export of tea was originally constituted as a partnership firm by three parties under a partnership deed dt. 27th Nov., 1963. By a deed dt. 16th Sept., 1981, the partnership was reconstituted with the admission of a new partner and also with the admission of a minor to the benefits of the partnership. In the assessment the AO took the view that though the assessee had not complied with the conditions prescribed for registration of the partnership firm under the IT Act, yet it was advantageous for the Revenue to confer registration on the firm under the provisions of s. 183(b) of the IT Act. He went through the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the benefits of partnership. For the asst. yr. 1986-87 as there was no change in the constitution of the firm, the entire total income was apportioned among the partners as also the minor admitted to the benefits of the partnership in equal proportion. 3. On appeal, the CIT(A) held that the AO was justified in invoking s. 13(b) of the Partnership Act in making the assessment in the status of a registered firm under s. 183(b) of the IT Act. On further appeal, the Tribunal by the order dt. 24th June, 1993, adverted to the provisions of the partnership deed dt. 16th Sept., 1981, in general and cl. 7 in particular and came to the conclusion that on perusal of cl. 7 of the partnership deed as a whole, it could be seen that what was intended w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons and rightly so. In view of the above discussion, we direct the Tribunal to remand the question pertaining to the application of s. 13(b) of the Partnership Act as well to the AO to record a clear finding in the light of the observations made by us in the body of the judgment." These appeals have thus come back to the Tribunal with the clear direction of the High Court to remand the question pertaining to the application of s. 13(b) of the Partnership Act to the AO to record a clear finding in the light of the following observations contained in the body of the judgment: "Para 14: We are, therefore, of the view that the question pertaining to s. 13(b) should have been remanded by the Tribunal to the AO asking him to elaborate whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the loss of the business. It was his contention that while recording a finding regarding the application of s. 13(b) of the Partnership Act, the AO would have to give a finding as to whether in spite of the presence of the minor in the partnership, s. 13(b) would have the application. The learned Departmental Representative, Shri C.D. Nair, in this context pointed out that at the time of the original appeal before the Tribunal the assessee had already raised the ground as to whether the AO was right in allocating the total profits on an equal basis between the partners and the minor beneficiary and that having found that s. 13(b) had no application, the Tribunal had no occasion to consider the plea against distribution of profits on equal b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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