COMMISSIONER OF INCOME TAX Vs. GUPTA COLD STORAGE

JUDGEMENT

(1.) The Income Tax Appellate Tribunal, Allahabad has referred following question of law under Section 256 (1) of the Income Tax Act, 1961 (here in after referred to as the Act) for opinion to this Court:

(2.) The reference relates to the assessment year 1971- 72

(3.) The assessee respondent claimed registration of firm on the basis of partnership deed executed on 7-11-1969. The application in Form No. 11 and 11-A were filed on 23-2-1970 together with the partnership deed. The Income Tax Officer found that the assessee firm is not genuine firm but it is a branch of the main firm M/s Goverdhan Dass Brij Behari Lal, consequently registration was refused vide order dated 18-3-1974. This order was confirmed in first appeal. The Tribunal, in Second appeal, set aside the order refusing to grant registration and remanded back the matter to Income Tax Officer for fresh consideration. It appears that during the pendency of assessment proceeding consequent upon the remand, the assessee respondent filed supplementary deed, which was duly executed by the guardian of the minors. The departments objection was that in the partnership deed executed on 7-11-1969 minors were admitted to the benefits of partnership firm but the deed was signed by the adult partners only and was not signed by any person on behalf of the minors. It was not signed by the guardian of the minors. The said mistake was sought to be ratified by filing supplementary deed duly signed by the guardian of the minors on 27-12-1976. Again, the Income Tax Officer refused to grant registration to the assessee respondent. However, the said order was set-aside in appeal by the Commissioner of Income Tax (Appeals) and the Income Tax Officer was directed to grant registration to the firm. This order has been confirmed by the Tribunal.