TMI Blog2010 (11) TMI 763X X X X Extracts X X X X X X X X Extracts X X X X ..... rtners is a permissible activity and the firms so constituted are genuine firms which are entitled to be assessed in the status of firms and for periods when registration is required under section 185, the firms are entitled to be assessed as registered firms subject to their satisfying other conditions - dismiss all the appeals filed by the Revenue. - 175, 157, 389, 546, 547, 649 of 2009 - - - Dated:- 29-11-2010 - RAMACHANDRAN NAIR C. N., BHABANI PRASAD RAY, JJ. JUDGMENT C. N. Ramachandran Nair J.- 1. The question raised in the connected appeals filed by the Revenue is whether the assessees which are partnership firms running bar hotels with a single bar licence obtained from the Excise Department in the name of only one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the partnership for registration under section 185 of the Income-tax Act and such firms cannot be treated as even genuine firms for assessment in the status as firm. 3. On going through the above two judgments of the Supreme Court, we find that detailed provisions of the Abkari Act and Rules are not stated in the three-member Bench decision, whereas in the later decision of the two-member Bench, the provisions of the Kerala Abkari Act and Rules are referred to and the decision is rendered in the context of the abkari laws of Kerala. However, we do not think there is any need for us to consider which of the above two decisions should be followed in these cases because for the reasons stated hereunder. We are of the view that the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is approved by the Excise Commissioner. In fact, whenever there is a change in constitution of the firm, the same is also approved by the Excise Commissioner. So much so, the contention of the assessee-firms is that the exploitation of licence issued in the name of an individual by the firm consisting of partners with licensee as one of the partners is very well known to the Excise Commissioner and it is with his knowledge and permission that business is carried on by such firms. There is no dispute on this factual position by the Income-tax Department. If the provisions of the Abkari Act and Rules are gone into, it is clear that the liquor business is closely monitored by the Excise Department at all stages including verification of acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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