9911796707
TMI Blog1936 (2) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Tax, Punjab, has formulated the following questions of law for the opinion of this Court :- (1) Whether on the facts of the case, the assessees were chargeable to tax under Section 3 of the Income Tax Act ? (2) Whether the assessees were to be dealt with as a "firm" or as an "association of individuals" ? (3) Whether registration under Section 26-A could be granted or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing in proportion to their respective shares and that each factory shall charge ₹ 10 per bale for ginning. The factory ginning was to keep ₹ 5-8 per bale and pay ₹ 4-8 to the partnership. At the end of the year the profit made by the partnership was to be divided between the partners in accordance with their respective shares. Any amount remaining unrealised from a purchaser or a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ship accounts, it was held that the transaction was business within Section 4, Clause 2, of the Indian Companies Act, and not a single venture falling outside the section. It was further held that for purposes of registration required by Section 4, Clause 2, of the Act, each of the unregistered firms cannot be regarded as a single legal entity; that "persons" under Section 4, Clause 2, d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duals". In view of our finding that the union is not a firm, the question of registration really does not arise. In any case, even if the Union is held to be firm, it cannot be registered as the individual shares of the different members of the firm constituting the partnership are not mentioned in the deed. With regarded to interest it is provided in the deed at partnership that each facto ..... X X X X Extracts X X X X X X X X Extracts X X X X
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