KRISHNA AND BROS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Madras Bench, has made this reference.

(2.) THE firm applied for renewal of registration under section 26A of the Indian Income-tax Act, 1922 (hereinafter referred to as the Act), for the assessment years 1960-61 and 1961-62 and the Income-tax Officer, by his orders dated 30th November, 1960, and 21st August, 1961, granted renewal of registration for the said two assessment years. THE Commissioner of Income-tax, Kerala, felt that the renewal of registration was wrongly granted. He therefore instituted proceedings under section 33B of the Act and came to the conclusion that the firm was not entitled to registration. THE registration was therefore cancelled and the Commissioner further directed that the firm will be assessed as an unregistered firm. THEre was an appeal before the Tribunal by the assessee-firm which failed. THEy have, however, as indicated earlier, referred the questions extracted above pursuant to applications under section 66(1).

(3.) BY this deed there were four adult partners and the two remaining minor sons continued as minors, and as we understand the document, admitted to the benefits of the partnership. This document also contained a clause about the sharing of profits and losses which is clause 11 and which is in these terms :