COMMISSIONER OF INCOME TAX Vs. POMPEI TILE WORKS

JUDGEMENT

(1.) Under a deed dated 1st of November 1961 (i) Mr. Francis Xavier Denis Pinto; (ii) Mr. Harold Charles Pinto; (iii) Mr. Guthbert Joseph Pinto; (iv) Mrs. Margaret Pinto and (v) Mrs. Deanna Lobo formed a partnership which provided for a share of 25% of profit or loss to Mrs. Margaret Pinto. The deed also provided that an outgoing partner had to give 3 months' notice of intention in writing to sever his/her connection with the partnership and the continuing partners had an option to purchase his/her share at a price as provided in clause-10 of the said deed. The purchase price was to be calculated in the manner provided in clause-10 of the deed. There is a provision in the deed for settlement of dispute amongst the partners by arbitration.

(2.) For some time prior to 1-4-1975 serious misunderstandings and disputes having arisen between Mrs. Margaret Pinto and other partners, Mrs. Deanna Lobo having expressed her desire for retirement from partnership and Mrs. Francis Xavier Pinto having died, a new partnership was entered into between: 1. Mr. Harold Charles,Pinto 2. Mr. Guthbert Joseph Pinto. 3). David J. Pinto Sons of deed. 4). Paul J.C. Pinter Francis Xavier Pinto 5). Mrs. Beatrice Pinto (who replaced Deanna-Lobo by a deed dt. 1-4-1975)

(3.) The said partnership-deed provided, interalia, at clause-5, the following: