COMMISSIONER OF INCOME TAX Vs. TAMIL PUTHAKALAYAM

JUDGEMENT

(1.) AT the instance of the Revenue, the Income-tax Appellate Tribunal, Madras, has stated a case and referred the following question of law under section 256(1) of the Income-tax Act, 1961 :

(2.) THE assessee is a firm engaged in the business of publication of books. THE assessment year with which we are concerned is 1977-78. THE assessee-firm was originally constituted with two partners, viz., Chockalingam and Muthiah. On April 1, 1976, there was a change in the constitution of the firm and one Kumari M. Meenakshi was taken into the business as a partner. One minor by name, Selvi M. Visalakshi, daughter of Muthiah, was admitted to the benefits of the partnership. In sub-paragraph 3 of the partnership deed, it is clearly stated that the adult members would be the partners. THE capital of the partnership firm was stated to be Rs. 5,004 contributed equally by all the four. Clause 12 of the said partnership deed was the subject-matter of consideration in the matter of grant of registration under the provisions of the Income-tax Act, 1961 (hereinafter referred to as "the Act").

(3.) THE Revenue is challenging the order of the Appellate Tribunal in the present tax case reference. As already seen, the Appellate Tribunal has stated a case and referred the question set out above.