TMI Blog1974 (8) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... d is 1961-62, the relevant accounting year for which was S.Y. 2016 (i.e., November 1, 1959, to October 20, 1960). At Sangli a partnership firm named and styled "M/s. Gandhi Fakirchand Chenabhai" carried on business from October, 1958, onwards. The instrument of partnership dated 17th January, 1959, governing the relations between the partners showed that the partnership consisted of five partners, viz., F.C. Gandhi, Babubhai, Shevantilal, Rameshchandra and Sureshchandra with respective shares of 12 nP., 25 nP., 25 nP., 19 nP. and 19 uP. It had been granted registration under section 26A of the Act for the earlier assessment years. During the relevant accounting period, viz., S.Y. 2016 (November 1, 1959, to October 20, 1960), one of the part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income should have been divided among five partners as per the first deed of partnership dated 17th January, 1959, and the latter income among four partners as provided in the second deed of partnership dated 9th May, 1961. Since the division of income was not made, as he felt it should have been made, the Income-tax Officer called for an explanation from the assessee-firm and by its letter dated 22nd June, 1962, the assessee-firm gave an explanation that division was not made as suggested by the Income-tax Officer as the transactions from after the death of F. C. Gandhi till the end of the accounting year were very small and the partners had decided to credit the profits as per the shares of the partners up to 28th August, 1960. The Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers of the first period from the income derived from the firm", because he took the view that the assessee-firm was an off-shoot of the old firm with five partners and the income of the firm up to the demise of F.C. Gandhi was otherwise assessable as in the hands of the five partners who constituted the firm. For the second period, he was of the view that the income of that period should be taxed as that of an unregistered firm. Against the direction given by the Appellate Assistant Commissioner, appeal was carried by the department to the Tribunal and the Tribunal took the view that the direction given by the Appellate Assistant Commissioner was not in accordance with law and that the said order was liable to be set aside. The Tribunal, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y for that period of the accounting year co-terminus with the death of F.C. Gandhi. It has been applied for the whole of the accounting period which was relevant for the entire assessment year 1961-62. But apart from that, the application for renewal has been signed only by the remaining four partners and by none of the legal representatives of the deceased, F. C. Gandhi. It was urged by Mr. Patil that the other four partners, viz., Babubhai Fakirchand, Shevantilal Fakirchand, Rameshchandra Fakirchand and Sureshchandra Fakirchand, have put their signatures to this application and since they are the sons of the deceased, Fakirchand, the application should be taken to have been signed by them in their capacity as heirs and legal representativ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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