TMI Blog1965 (10) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... on to the firm under section 26A of the Act for the three assessment year 1958-59 to 1960-61 is not justified ? 2. One Sreeranga Mudaliar commenced business in retail handloom cloth at Erode and was carrying it on in his individual capacity for about three years. In or about 1957, he took in certain other persons as partners and a partnership deed was duly executed on September 5, 1957, consist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Income Tax Appellate Tribunal refused registration on the ground that there was no provision in the partnership deed entitling partners Nos. 3 and 4 to anything more than a share of the profits specified in the deed of the assessee-firm, and they acted contrary to the deed in paying partners Nos. 3 and 4 something over and above the shares of profits specified in the partnership deed in the guis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the application shall be accompanied by the original instrument of partnership under which the firm is constituted together with a copy thereof it is not disputed that this rule was complied with The officer on receipt of the application; under the rule 4; after satisfying himself that there is or was a firm in existence constituted as shown in the instrument of partnership deed and that the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal is not there was on partnership or that the application was not properly made but that the profits were not correctly calculated as two of salary. This, in our opinion, will not be a ground for refusing registration. The finding that the net profits of the firm are reduced can not also be accepted, for the employees. The fact that two of the partners were discharging certain duties of employe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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