TMI Blog1976 (4) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... Ram Kumar Agarwalla, (2) Monoharlal Agarwalla, (3) Ram Gopal Agarwalla, (4) Ramanand Agarwalla, (5) Badriprasad Agarwalla, (6) Phulwati Devi, wife of Onkar Agarwalla (decd.). The partners had equal shares in the partnership and were governed by the partnership deed dated the 5th March, 1956. The firm had been registered under the Income-tax Act up to and including the assessment year 1959-60. For the assessment year 1960-61, an application was made on the 28th June, 1960, by the firm for renewal of registration under section 26A of the Indian Income-tax Act, 1922. This application was duly signed by the said six partners. On the 29th August, 1960, a new partnership deed was executed which, inter alia, provided as follows : " .. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... business together with the first-mentioned five partners hereto ; the said first to the fifth named partners hereto were satisfied about and accepted the fact of the said mutual partition and delivery of possession to each other as well as the fact of the relinquishment of the rights, title and interest by the said widow, Smt. Phool Vati Devi, in the said partnership undertaking, business and firm, Ram Kumar Agarwalla Brothers, absolutely and unconditionally in favour of the Seventh Party hereto and further agreed to admit the Seventh Party hereto in fullfledged partnership with them ; as a result of the said agreement the said seven parties hereto have since the 1st day of January, 1959, been carrying on the said hithertofore exis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the account books of the firm in the name of Sajjan Kumar contrary to the earlier deed of partnership dated the 5th March, 1956, the application for registration was misconceived. The assessee went in further appeal before the Tribunal. The Tribunal found and/or held, inter alia, as follows : (a) Application for renewal of registration for the assessment year 1960-61 had to be made before the 30th June, 1960, as required under rule 2 of the Income-tax Rules, 1922, and consequently the assessee's application for renewal filed on the 29th June, 1960, complied with the statutory requirements. (b) Under rule 6, the partnership deed to be considered was the one operative for the calendar year 1959 and the deed dated the 29th August, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the 1st January, 1959, the old partnership ceased to be effective and the new partnership came into existence by an oral agreement between the parties. This oral agreement was ultimately recorded in the deed dated the 29th August, 1960, but factually from 1st January, 1959, it was the new partnership which was admittedly carrying on the business of the firm. This new partnership on an oral agreement was not entitled to be registered. Also the new partnership was not entitled in any event to ask for a renewal of the registration of the old partnership. The subsequent deed is an admitted and accepted document and, to the extent it records actual transactions and creation of mutual rights and liabilities in the relevant assessment year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the High court could not interfere with such conclusion unless the conclusion was perverse or not supported by any evidence. This decision does not appear to advance the case of the assessee in this reference. In the instant case, the Tribunal has found as follows : " We are, therefore, of opinion that the provision in the deed dated 29th August, 1960, that Sajjan Kumar was deemed to be a partner from 1st January, 1959, was of no consequence for the calendar year 1959 and did not affect the rights of the partners under the deed dated 5th March, 1956, which was operative throughout the previous year 1959 ; that the terms of this deed have been fully acted upon and that by the firm acting on Phulwati Devi's letter dated 19th July, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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