Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1984)9ITD480(Hyd.)
..... as business in the sense of the partnership act the firm would be entitled to registration.the above observations show that the concept of the definitions in the indian partnership act, 1932 have been imported into the act and the definitions to be considered for the purposes of deciding whether an entity is a 'firm' or not in both the acts would, thus, be synonymous.we now come to section 4 of the indian partnership act which reads as under : 'partnership' is the relation between persons who have ..... because one of the partners entered into the lease agreement with fci without the lease deed mentioning that the property was that of the firm, does not make the income cease to be that of the firm, firstly because the person concerned was a managing partner and what is more important and clinching under section 16 of the indian partnership act in the absence of contract to the contrary, profits ..... when he contends that as soon as parties agreed to subscribe capital and to get shares in the profits and as soon as they started business in pursuance of this agreement, section 4, indian partnership act was attracted. ..... the leading case on the point, as to what constitutes carrying on of business within the meaning of the indian partnership act, there are the following observations : (7) the evidence as a whole, in my opinion supports the defendant's version that a definite agreement had been reached about the capital to be subscribed by each partner and about the share each one would have .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (2005)93ITD15(Hyd.)
..... 2 of the revised grounds of appeal filed on 14-9-2004.the learned dr submitted that sections 45 to 55 of the indian partnership act, 1939, occur in the same chapter vi of the act, and all the sections pertain to dissolution of firm and section 45 provides for liability for acts of the partner done after dissolution; section 46 provides for right for continuing authority of partners for purposes of winding up; section 48 provides for mode of settlement of accounts between the partners and states that losses shall not be paid etc.similarly, referring ..... to sections 49, 53 and 54 as well as section 55, the learned dr submitted that though a notice was given ..... he submitted that the legal requirements of section 40 of the indian partnership act regarding the drawing up of account of the retiring partner etc. ..... the suit for distribution of the property after protracted litigation, go resolved ultimately by way of a mutual agreement between the partners in the court, which resulted in a compromise decree. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1992)40ITD424(Hyd.)
..... shri sudershan had time to determine whether he should become a full-fledged partner or not till 19-3-1982 under the provisions of section 30(5) of the indian partnership act, 1932 and therefore since 19-3-1982 falls within six months to 31-3-1982 shri sudershan should be deemed to have enjoyed the same status in the firm which he had enjoyed earlier. ..... under the provisions of section 30(5) of the indian partnership act, 1932, a minor can elect to become a full-fledged partner on attaining majority within six months of the date on which he attains the majority or of his obtaining knowledge that he was admitted to the benefits of partnership, whichever date is later. ..... in that case it was held that it is entirely up to the partners to decide that any or some of them will not have the share of losses and that any sort of agreement in that regard would not offend any provision of the indian partnership act, 1932. ..... so long as the minor who attained majority does not undertake to bear any part of the losses as per the agreement between the partners, no fresh deed of partnership is necessary, if only he is entitled to any agreed proportion of profits. ..... as per section 4 of the same act, the partners must agree to share profit and hence agreement to share losses is not essential. ..... 12 can be considered as part of the agreement, equal to the terms of the agreement between the partners of the firm. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1986)19ITD494(Hyd.)
..... that as per the return filed by the assessee, the share of loss has been allocated to shri thanikachalam along with others which was not permissible under the indian partnership act, 1932. ..... however, the firm had filed its application under section 58 of the indian partnership act for registration of the firm on 30-3-1981 under rule 5 in form a in the file of the registrar of firms and according to it, ..... the specific provision in clause 19 incorporating the provisions of the indian partnership act, the conclusion that section 30 of the said act is violated does not appear to be valid. ..... on facts that it was the widow who became partner representing her minor sons and the deed of partnership was in conformity with section 26(a) of the indian partnership act and did not suffer from any defect which would entail nonregistration of the partnership. ..... that the minor had been admitted as a full-fledged partner liable to the share of profits and losses and such admission was against the provisions of section 39 of the indian partnership act. ..... rao [1972] 84 itr 764, it was laid down by their lordships of the andhra pradesh high court that where the original registration has been granted under section 185(1) or the certificate of continuation of registration under sub-section (7) of section 184, read with sub-section (4) of section 185 of the act is granted for the subsequent years of assessment, the ito may cancel the same if, in his opinion, in the previous year, no genuine firm was in .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1987)21ITD334(Hyd.)
..... section 30(5) of the indian partnership act, 1932, reads as follows : at any time within six months of his attaining majority, or of his obtaining knowledge that he had been admitted to the benefits of partnership, whichever date is later, such person may give public notice that he has elected to become or that he has elected not to become a partner in the firm, and such notice shall determine his ..... this decision, under section 30 of the indian partnership act, if a minor on attaining majority elects to continue as a partner, the partnership does not come to ..... majority and opts to remain in, he becomes a full-fledged partner under the indian partnership act, but since he was already a partner within the meaning of i.t. ..... report, their lordships observed as follows : under the indian partnership act a minor is admitted to the benefits of the partnership; he is not a partner. ..... , sixth part, seventh part, eighth part, ninth part, tenth part, eleventh part, twelfth part, thirteenth part, fourteenth part, and fifteenth part, as partners in this new partnership business and give them a fair share for each in the profits and losses of the new partnership on the specific condition, that the minor partners shall be entitled to sharing of profits only, and not to share in the losses of the ..... the minor on attaining majority becomes a partner only because that was the agreement in the original deed. ..... the agreement in the original deed evidenced the consent of the other major partners to accept the .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1984)10ITD525(Hyd.)
..... the argument of the learned departmental representative was that this subsequent deed cannot play a part in determining whether there was dissolution or not of the earlier firm.under the provisions of section 42 of the indian partnership act, 1932, in the absence of an agreement to the contrary, a firm will dissolve on the death of a partner. ..... the provisions relating to dissolution of partnership start with the provisions of section 39 and section 40 of the indian partnership act expressly provides that a firm may be dissolved with the consent of all the partners or in accordance with a contract between the partners. ..... 492) the aforesaid observations themselves are clear that where there is a dissolution of the firm because of the provisions of the indian partnership act, the income of the different periods has to be assessed separately. ..... accompanying the return were statements containing the trading account, profit and loss account for this period as well as the balance sheet as on 31-3-1981. ..... accompanying the return were statements containing the trading account for the period 1-4-1980 to 25-12-1980, profit and loss account for that period and the balance sheet as on 25-12-1980. ..... all trading accounts for such periods had also been drawn up as also a separate profit and loss account. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1986)19ITD1(Hyd.)
..... he pointed out relying upon section 14 of the indian partnership act, 1932 that the site on which the theatre was built was always treated as the property of the firm and it is unthinkable that the partners regarded only the superstructure as the assets of the partnership and not the land on which the superstructure was built ..... after deduction of liabilities and prior charges may be determined on taking accounts on the footing of notional sale of partnership assets and be paid to him but the determination and payment of his share may not invariably be done in that manner and it is quite conceivable that, without taking accounts on the footing of notional sale, by mutual agreement, a retiring partner may receive an agreed lump sum for going out as and by way of consideration for transferring or releasing or ..... assigning or relinquishing his interest in the partnership assets to the continuing partners and if the retirement takes this form and the deed in that behalf is executed, it will be difficult to say that ..... thereafter, sometime on 5-11-1980 the assessee entered into an agreement with the other partners by which the assessee retired from the partnership in consideration of payment of a sum of rs. .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1995)54ITD612(Hyd.)
..... this position in law has been given statutory recognition, by section 5 of the indian partnership act, 1932 ..... particular class of consumers to which we belong.we agree that the board shall have the unilateral right to vary, from time to time, tariffs, scale of general and miscellaneous charges and terms and conditions of supply under this agreement by special or general proceedings.in particular, the board shall have the right to enhance the rates chargeable for supply of electricity according to exigencies".thus, in relation to the rate(s) at which power supply will be available to it, ..... fact that simply because there is quid pro quo and even total quid pro quo - one should not rush to the conclusion that the price charged by the government or a state instrumentality while carrying on a trade or business is "fee" in the technical sense in which the term has been used in the seventh schedule to the constitution ..... now, one of the tests to ascertain whether a particular article or thing is "plant" for the purpose of investment allowance is to see whether the article or thing is really a took of the assessees trade, or is merely the setting in which the assessees trade is being carried on, or even whether the article or thing was just a labor-saving device.if a particular article of thing is the tool of the assessees trade and if you remove the tool, the trade comes to a grinding ..... as the state can carry on a trade or business, such a charge is the normal incident of a trading or business .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (2004)91ITD481(Hyd.)
..... according to section 4 of the indian partnership act, it is not necessary that the business should be carried on by all the partners and that all the partners should participate in running ..... according to section 4 of the indian partnership act it is not necessary that the business should be carried on by all the partners and that all the partners should participate in ..... plots were thrown into the common stock of the appellant-firm as their capital contribution in terms of section 14 of the indian partnership act. ..... according to section 6 of the partnership act, 1932, in determining whether a group of persons is or is not a firm, or whether a person is or is not partner in a firm, regard shall be had to the real relation between the parties, as shown by all relevant facts ..... illegalities in selling those two plots after their retirement from the appellant-firm.but their illegal acts cannot make the appellant-firm a non-genuine one so as to lose the registration benefit under section 186(1) of the act.we fail to see any justification on the part of the ao to cancel registration for the reason that in the sale agreements of constructed flats the partners are identified or described as owners of their respective plots which ..... according to section 6 of the partnership act, 1932, in determining whether a group of persons is or is not a firm, or whether a person is or is not a partner in a firm, regard shall be had to the real relation between the parties, as shown by all relevant facts .....
Tag this Judgment!Court : Income Tax Appellate Tribunal ITAT Hyderabad
Reported in : (1982)2ITD67(Hyd.)
..... he referred to section 43(1) of the indian partnership act, 1932 ('partnership act'), and the following rulings in support of his stand-sathappa chetty v. s.n. ..... however, the supreme court proceeded to observe that even assuming that the term "notice" in the above provision was wide enough to include within it a plaint filed in a suit for dissolution of partnership, sub-section (2) of section 43 of the partnership act itself provides that the firm will be deemed to be dissolved as from the date of communication of notice. ..... ram chand air 1924 pc 2 to the effect that a partnership at will can be dissolved at the instance of any of the partners and that section 43 of the partnership act provides that any partner may dissolve a partnership at will by merely serving a notice of his intention to do so on all other partners. ..... kanshi ram air 1963 sc 1165, the supreme court referred to section 43(1) and 43(2) of the partnership act and observed that the firm could be dissolved as from the date mentioned in the notice as the date of dissolution or, if no date is so mentioned, as from the date of communication of the notice. ..... the supreme court, therefore, observed that the date of the service of summons accompanied by a copy of the plaint cannot be regarded as the date of dissolution of the partnership and section 43 of the partnership act would be of no assistance. .....
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