COMMISSIONER OF INCOME TAX Vs. JANATA MEDICAL STORES

JUDGEMENT

(1.) This reference arises out of an order of the ITO under Section 184 of the I.T. Act, 1961, refusing to register Janata Medical Stores, the assessee, as a firm under Section 185 of the said Act for the assessment year 1969-70, the corresponding previous year being that ending on October 21, 1968. On consideration of the provisions of the deed of partnership dated January 25, 1968, under which the firm was constituted, the ITO came to the conclusion that the firm was not genuine.

(2.) On appeal by the assessee, the AAC noted that all the partners of the assessee were shown as partners in the bank. They were also authorised to operate the account of the partnership. He also took into account that the partnership was registered with the Registrar of Firms and the Registrar of Assurances and came to the conclusion that the partnership was genuine and directed the ITO to grant registration.

(3.) On a further appeal by the Revenue, the Income-tax Appellate Tribunal on a consideration of the deed of partnership in its entirety held that there was a genuine partnership and dismissed the appeal of the Revenue.