TMI Blog1994 (9) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... f registration to the assessee-firm. 2. This appeal was late by three days. We have looked into the explanation of the assessee in this regard and have heard the learned D.R. on the point. For the reasons explained, the delay of three days is hereby condoned. 3. The assessee-firm was granted registration for assessment year 1981-82 as well as for assessment year 1983-84, ie., the immediately ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and above his specified share ratio. Continuation of registration was disallowed and the firm was treated as URF for the assessment year 1982-83. 4. The learned CIT(A) upheld the order of the Assessing Officer and also relied on the Supreme Court decision in R. C. Mitter Sons v. CIT [1959] 36 ITR 194. 5. Shri L.P. Dhir, the learned counsel for the assessee, submitted that according to sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to division of profits amongst the partners. It was also submitted that the decision of the Supreme Court in R. C. Mitter Sons' case was in respect of registration and not continuation of registration. It was also submitted that withdrawal of moneys in excess of one's share by a particular partner would not amount to withdrawal of profits contrary to the terms and conditions of the partnership ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irm had filed a statement of income in which the total profits of Rs. 39,584 stood divided between two partners equally at Rs. 19,792 each. In our opinion, division of profits in the statement of income would be enough compliance of the rules even if it was held that division or crediting of profits was basic to the allowance of continuation to the registration. We hold and direct accordingly. We ..... X X X X Extracts X X X X X X X X Extracts X X X X
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