KURUMBERHALLI ESTATE "A" Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THIS revision arises out of the order of the Commissioner, dated August 25, 1980, made under s. 35 of the Karnataka Agricultural Income-tax Act, 1957 (called shortly "the Act"), setting aside the assessment order, for the year 1975-76 and also cancelling the registration of the assessee-firm. A firm styled as "Kurumberhalli Estate 'A'" was evidenced by an instrument of partnership, dated April 8, 1969, with effect from April 1, 1969. It comprised of four partners, namely, (1) M C Mathew, (2) M C George, (3) M M Chandy and (4) Chandy George. The firm was granted registration under s. 29 of the Act.

(2.) UNDER clause (13) of the deed of partnership, it was provided that in the case of death of any partner, the representatives in the interest of the deceased partner shall be entitled to become a partner on the same terms as the deceased partner.

(3.) WE fail to understand the reasoning behind the order of the Commissioner. M C George died on February 16, 1975. Form No. 8 for renewal of registration of the firm was filed on June 20, 1975. Upon the death of M C George, his wife has legitimate right to become a partner with the same rights and liabilities of her husband under cl.(13) of the deed of partnership. In exercise of that right quite naturally she alone could sign Form No. 8 and she did sign that form. She did not sign on behalf of her husband. She signed that form personally as partner. The Commissioner could not have found fault with that form on the ground that Mrs. M C George could not have signed for the deceased partner. WE fail to understand who else could sign Form No. 8 presented on June 20, 1975, when M C George was not at all alive.