VIJOY CLOTH STORES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE material facts and the proceedings leading up to this reference are, inter alia, that Vijoy Cloth Stores, Ranchi, the assessee, is a partnership firm constituted under a deed of partnership dated November 17, 1969. THE assessee-firm, at its inception, consisted of two major partners, namely, Jag Narain Prasad and Smt. Kamla Devi Jaiswal, and a minor, named, Rajendra Prasad Jaiswal, was also admitted to the benefits of the partnership. THE said deed provided, inter alia, that the profits of the said partnership would be divided amongst the two major partners and the said minor as one-third share each and the losses of the said partnership would be borne by the two major partners in equal shares. It was further provided that unless the minor declined to continue to be a partner in the said firm within six months from the date of his attaining majority, he would automatically be treated as a partner therein and the profit and loss of the partnership would be divided among the three partners in equal shares.

(2.) THE said partnership was duly registered under Section 184 of the Income-tax Act, 1961, and continued to be so registered till the assessment year involved, namely, assessment year 1975-76, the accounting year ending on November 11, 1974.

(3.) IN compliance with the aforesaid, the assessee filed a fresh declaration in revised Form No. 12 on January 6, 1976. This declaration form was signed by one of the partners, Jag Narain Prasad, for himself and also on behalf of the other original partner, Kamla Devi Jaiswal.