UNITED HARDWARES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The Income Tax Appellate Tribunal, Cochin Bench has referred the following question for our decision.

(2.) The relevant provisions of the Partnership Deed (Annexure A) are Clause.7 and 15. They read as follows:

(3.) Chap.3 of the Indian Partnership Act, 1932 (for short the Act) deals with "relations of partners to one another" and Chap.4 thereof deals with "relations of partners to third parties". Though the wording in Clause.15 of the Partnership Deed is not very clear as to what are the provisions of the Indian Partnership Act that are intended to be made applicable it may not be unreasonable to construe that clause to refer to Chap.3 and 4 of the Partnership Act. So construed the provisions in the Act dealing with "relations of partners to one another", will be attracted. The provisions in S.13 of the Act can therefore be referred to. The relevant part of that section is in these terms: