COMMISSIONER OF INCOME TAX Vs. RAMRAJ FINANCE

JUDGEMENT

(1.) THE Revenue has caused this reference, which relates to the assessment years 1971-72 to 1973-74. THE questions referred to us are :

(2.) THE assessee is a partnership firm, which was constituted under a deed of partnership dated April 1, 1969. It consists of four partners. THE share of each of those partners in the profit and loss of the firm has been set out in the partnership deed. THE firm was registered under Section 184 of the Act and the registration continued up to the year 1970-71. THE assessee applied in the prescribed form a declaration for continuance of the registration. THE Assessing Officer refused the continuation on the ground that the assessee had, in a settlement proceeding, agreed to have the income of another firm, by name, Seth Kishanchand Ramchand, included in the total income of the assessee-firm and taxed accordingly. THE view of the Assessing Officer was affirmed by the appellate authority, but was reversed by the Tribunal.