COMMISSIONER OF INCOME TAX Vs. CHOPDA TRADING CO

JUDGEMENT

(1.) THIS is a reference made by the Income-tax Appellate Tribunal referring for our answer the following questions of law :

(2.) THE facts, briefly stated, are that the assesses is a firm which was constituted by a deed of partnership dated 20th December, 1969. THEre were four partners in the firm and four minors were admitted to the benefits of partnership. Registration was granted for the assessment year 1973-74. THE firm was also granted continuation of registration for the assessment years 1974-45 and 1975-76 by the ITO. One of the minors, namely, Kamal Chand, became major on 4th December, 1970. No fresh deed was executed on Kamal Chand's attaining majority. THE Commissioner revised the orders of the ITO granting continuation of registration for the assessment years 1974-75 and 1975-76 and set aside those orders. It was held by the Commissioner that because of the minor attaining majority, there was a change in the constitution of the firm and that continuation registration could not be granted. THE Tribunal, in appeal filed by the assessee, relied on certain circulars and held that continuation of registration could not be refused simply because one of the minors admitted to the benefits of the partnership became major and no fresh deed of partnership was executed.

(3.) THERE will be no order as to costs of this reference.