HARKISONDAS GOKALDAS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE question which has been referred to this Court under S. 256(1) of the IT Act, 1961 (hereinafter referred to as "the Act"), is as follows :

(2.) ONE Gokaldas Mulchand and his son, Harkisondas Gokaldas, were partners of the assessee firm. With effect from November 1, 1959, another son of Gokaldas, namely, Anilkant Gokaldas, was taken as a partner of the assessee firm. One of the clauses of the partnership deed provided that on the death of any of the partners "the said partnership shall not and shall not be deemed to have been dissolved as from the date of death of the said partner" and shall be deemed to continue as before by taking the heirs and legal representatives of the deceased partner as partners in his place.

(3.) THE ITO while considering the application form for registration took the view that in the absence of any provisions in the partnership deed relating to individual specifications of shares of all the partners the registration could not be granted. According to him, the individual shares of the widow and the major daughter as well as the shares of the four minor children, who were admitted to the benefits of the partnership, were not specified in the partnership deed. The AAC also came to the conclusion that, as the individual shares of the partners were not specified and, further having regard to the fact that the profits coming to the share of the party of the third part were credited into one account, the order refusing registration was proper.