DEEP ENTERPRISE Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) ON an application filed under Section 256(1) of the Income-tax Act, 1961, the Tribunal has referred the following question for our opinion :

(2.) THE assessee-firm was formed by means of partnership deed dated July 21, 1980, and the shares of the partners, the ratio of profits and losses of the partners have been shown in the partnership deed. THE assessee had moved an application for registration of the firm. THE Income-tax Officer examined one of the lady partners of the firm, namely, Smt. Meena Ramchand. After examining Smt. Meena Ramchand, the Income-tax Officer was of the view that the firm is not a genuine one and rejected the application moved for the registration of the firm.

(3.) WE have gone through the statement of Smt. Meena Ramchand and also perused the orders passed by the authorities below. The Tribunal, after examining the material available on record and also the statement of Smt. Meena Ramchand, had come to the conclusion that the firm is not a genuine one. In para. (2) of the order passed by the Tribunal, the Tribunal has considered the facts and after considering the decision in the case of Mahavir Industrial Works v. CIT [1984] 149 ITR 539 (MP) and also in the case of Ganga Cut Piece Centre v. CIT [1982] 137 ITR 274 (MP), the Tribunal has confirmed the view taken by the Appellate Assistant Commissioner that the firm is not a genuine one.