COMMISSIONER OF INCOME TAX Vs. GULAB DAS

JUDGEMENT

(1.) THIS order will dispose of the five applications under Section 256(2) of the Income-tax Act, 1961 (No. XLIII of 1961) (for short "the Act" hereinafter).

(2.) THEY relate to the assessment years 1972-73, 1973-74, 1974-75, 1976-77 and 1977-78. The Tribunal by a consolidated order dated March 16, 1983, allowed the five appeals filed by the assessee.

(3.) THE first question suggested by the Commissioner of Income-tax is with respect to the consideration in the form of capital for becoming a partner. THE Appellate Assistant Commissioner held that non-contribution of capital by Suit. Rukmabai cannot render the firm invalid. THE Revenue did not dispute this by filing any appeal or any cross-objection. THE Appellate Tribunal stated in its order that in view of this, it is not open to the Revenue to raise this controversy again. However, the Appellate Tribunal did not stop at that and stated that it is settled that non-contribution of capital by a partner does not render the partnership invalid and so even if there was no contribution of capital by Smt. Rukmabai, it did not render the firm invalid. THE question is merely of an academic nature and, therefore, it does not give rise to any question of law.