COMMISSIONER OF INCOME TAX Vs. POTATO SUPPLIERS SYNDICATE

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Chandigarh Bench, has referred the following question of law for the decision of this court:

(2.) THE assessment related to the year 1966-67 and the previous year relevant to the assessment year ended on June 30, 1965. THE assessee, a registered firm, had 19 partners. One of the partners by name Lal Ram Sukh Pass died on June 4, 1965. As per Clause 8 of the deed of partnership produced as annexure-A, the assessee's widow was taken as a partner of the firm and the reconstituted partnership was also registered with the Income-tax Department. THE Income-tax Officer refused to give the assesses-firm the benefit of registration under Section 184(7) of the Income-tax Act as, according to him, there was dissolution of the firm on the death of one of the partners during the accounting period. This order of the Income-tax Officer was affirmed by the Appellate Assistant Commissioner of Income-tax. In appeal before the Tribunal, the Judicial Member and the Accountant Member passed separate orders expressing different views on the question of law. THE case was referred to a third Member and based on the opinion of the majority, the Tribunal directed the registration of the firm for the assessment year 1966-67 after affording the assessee an opportunity to submit a proper application for registration.