P C KAPOOR Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the applicant-firm, P.C. Kapoor and Brothers, the Appellate Tribunal, Allahabad, has referred the following question arising in respect of assessment years 1962-63 and 1963-64 for the opinion of this court:

(2.) THERE was a partnership-firm carrying on business in the name and style, P. C. Kapoor and Bros. This firm consisted of five partners, viz., (1) Shyam Kishore Kapoor, (2) Nawal Kishore Kapoor, (3) Prem Chand Kapoor, (4) Om Prakash Kapoor, and (5) Ragho Kapoor. It was registered under the provisions of the Income-tax Act for the assessment year 1961-62. On 9th April, 1961, the aforementioned persons and Sarvashri Debi Prasad and Badri Prasad entered into a partnership agreement and stipulated that the assets and liabilities of P.C. Kapoor and Bros, were to be taken over by the new partnership-firm, hereinafter referred to as the firm, which was to continue the business in the same firm-name. The agreement further provided that the new partnership-firm will be deemed to have come into existence with effect from 1st of April, 1961, and that it was to do business of excise contract which may be taken in the name of any partner or partners. So long as the firm continued, any contract taken in the name of an individual partner or in the names of more than one partner will be deemed to be the business of the firm.

(3.) THIS firm applied for its registration under the provisions of the Income-tax Act, 1961, for the assessment year 1962-63. It further filed a declaration under Section 184(7) of the Income-tax Act, 1961, and claimed continuance of its registration for the assessment year 1963-64.