1978 (12) TMI 6

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... on is whether the assessee-firm was rightly treated as an unregistered firm for the assessment year 1969-70. Messrs. Prakash Khandsari Mills, the assessee-firm, carried on business under a deed of partnership dated June 19, 1963. The firm consisted of four partners. Each of them had a one-fourth share. Dal Singar Singh, one of the partners, died on October 1, 1968. The business was carried on un .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... t cause dissolution yet, in fact, the partners decided to dissolve the firm which was at will, by not continuing that business and by closing the books of account as on September 20, 1968. He also emphasized that the preamble to the second partnership deed executed on April 2, 1969, also provided that after the death of Dal Singar Singh, the partnership business was closed and a new business had c .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... d but further adds that a new business had come into existence with the three old partners and one Surya Nath Singh as a fresh partner. If the partnership constituted by the document of April 2, 1969, was a fresh partnership which came into existence after the dissolution of the old, all the partners would be treated as fresh partners and not merely the fourth one who came in the place of Dal Sing .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... this court in Badri Narain Kashi Prasad v. Addl. CIT [1978] 115 ITR 858 has held that it was not necessary to draw up fresh deed of partnership in cases where the pre-existing partnership deed gives the complete requisite information especially with regard to the identity of the partners and their shares after the change has occurred in the constitution of the firm. In this case, however, this dic .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... requisite in the case of a change in the constitution of the firm. That document was hence not helpful. In our opinion, the Tribunal was justified in its conclusion that, under the circumstances, the firm was not entitled to continuance of registration for the year 1969-70. The question referred to us is hence answered in the affirmative, in favour of the department and against the assessee. The C .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X