SANJAY CONSTRUCTION CO Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) At the instance of the assessee, the Tribunal, Ahmedabad Bench has referred the following three questions to this Court for the decision under s. 256 of the IT Act, 1961 :

(2.) The assessee is M/s Sanjay Construction Co., a partnership firm registered under the Indian Partnership Act as well as the IT Act. The first partnership deed had taken place on 19th July, 1975 and the said partnership deed contained the following clause :

(3.) The ITO came to the conclusion that, as the asst. yr. 1977-78 has come to an end on 31st March, 1977 and as the partnership in question has taken place on 19th May, 1977 and the application in Form No 11A is filed on 30th July, 1977, the said application could not be allowed for the registration of the firm in the asst. yr. 1977-78. According to him, the new partnership deed ought to have come into existence prior to 31st March, 1977 and only in case the partnership had taken place prior to 31st March, 1977, there was a question of condoning the delay. Being aggrieved by the said decision of the ITO, the assessee went in appeal before the AAC, Surat by way of Appeal No. SC/IG-3/80-81 and it was dismissed by the said appellate authority by order dt. 4th Nov., 1980 and confirmed the view taken by the ITO. Thereupon, the assessee went before the Tribunal by way of ITR 2388/Ahd-80 and unfortunately for the assessee, the Tribunal also took the same view and concurred with the finding recorded by the two authorities below. Hence, at the instance of the assessee, this reference has come before us.