TMI Blog1989 (2) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... to as "the Act"), the Income-tax Appellate Tribunal, Jabalpur Bench, Jabalpur, has referred the following question of law to this court for its opinion : "Whether, on the facts and in the circumstances of the case, the assessee-firm is entitled to registration despite the assessee's failure to distribute the loss suffered by the firm among the partners for the assessment years 1978-79 and 1979-8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l before the Tribunal. The Tribunal held that the assessee-firm was entitled to registration. The Tribunal, therefore, allowed the appeal. Aggrieved by the order passed by the Tribunal, the Revenue sought reference and it is at the instance of the Revenue that the aforesaid question of law has been referred to this court for its opinion. Having heard learned counsel for the Revenue, we have come ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT [1959] 36 ITR 194, it has been laid down by the Supreme Court that one of the essential conditions that should be fulfilled before a firm is entitled to registration is that the profits (or loss, if any) of the business relating to the previous year, should have been divided or credited, as the case may be, in accordance with the terms of the instrument, but the decision in R. C. Mitter and So ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as right in holding that failure to distribute the loss suffered by the assessee among the parties would not disentitle the assessee-firm to registration. Our answer to the question referred to this court by the Tribunal is, therefore, against the Revenue and in favour of the assessee. In the circumstances of the case, parties shall bear their own costs of this reference. - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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