Judgment Search Results Home > Cases Phrase: indian partnership act 1932 section 54 agreements in restraint of trade Court: income tax appellate tribunal itat mumbai Page 1 of about 1 results (0.103 seconds)

Minnow Trading Company Pvt. Ltd. Vs. Ito

Court : Income Tax Appellate Tribunal ITAT Mumbai

..... not entitled to interest on the capital subscribed by them, when there are no profits with the partnership firms as per the provisions of section 13(c) of the indian partnership act, 1932 we find that the provisions of section 13(c) of the indian partnership act, 1932 provides- subject to contract between the partners where a partner is entitled to interest on the capital subscribed by him, such interest shall be payable only out of profits.the provisions of section 13(c) of the indian partnership act, 1932 being the law of the land, the partners of the firms are entitled to interest on the ..... we find that the plea of the assessee that the clause-7 of the partnership deed stands amended with the agreement between the partners of the firms dt. ..... the agreement abut charging of interest is contained in clause 7 & 8 of the partnership deed. ..... the assessing officer has doubted the authenticity of the agreement dt.20.10.99 between the partners of the firms amending clause-7 of the original partnership deeds and has held the same as self-serving documents. ..... once it is accepted that the agreement to levy interest on capital has been lawfully modified the assessment of interest on such capital is without any foundation and may be deleted. 9. ..... these clauses have been modified by agreement among the partners. .....

Wealth-tax Officer Vs. Mrs. Bakhtawar B. Chenoy

Court : Income Tax Appellate Tribunal ITAT Mumbai

Reported in : (1990)32ITD739(Mum.)

..... the parties and considered their rival submissions.the partnership, as defined in section 4 of the indian partnership act, 1932, is the relation between the persons, who have agreed to share the profits and losses of a business carried on by all or any of them acting for all. ..... and duties of the partners of a firm may be determined by contract between them and such contract, as per section 11 of the indian partnership act, may be expressed or may be implied by a course of dealings. ..... in the absence of any allocation in the deed for a particular mode of allocation, the assessee had a right in the development rebate reserve as per her share of profit in terms of the indian partnership act. ..... section 11 of the partnership act is however, subject to the other provisions of the same act ..... no specific provision in the partnership act to deal with such a ..... on these facts, while valuing the assessee's share of interest in the partnership, the assessee had not included any part of the development rebate reserve in ..... breweries and distilleries with effect from 1-10-1979 by partnership deed dated 21-10-1979 with 10% share in the profit ..... for the assessee, on the other hand, submitted that the partnership being a relation by agreement, the rights and liabilities of the partners are to be governed by the agreement. ..... the partnership deed is silent ..... under clause (b) of section 13, the partners are entitled to share equally all the profits earned and shall contribute equally to the losses sustained .....

Central Cloth Co. Vs. Income-tax Officer

Court : Income Tax Appellate Tribunal ITAT Mumbai

Reported in : (1991)37ITD1(Mum.)

..... under section 4 of the indian partnership act, 1932, 'partnership' is the relation between persons who have agreed to share the profits of a business carried on by all or any of them acting for all. ..... the hon'ble mysore high court held that the relationship amounted to a partnership/firm and it was registrable under section 26a of the act with the reasoning that the fact that no partner could, as of right, draw the profits during the first ten years did not mean that there was no agreement to share the profits. ..... notwithstanding anything stated or provided herein the partners shall have full powers and discretion to modify, alter or vary the terms and conditions of this partnership deed in any manner whatsoever they think fit by mutual agreement which shall be reduced to writing and be signed by all the partners and thereupon the said writing shall become an appendage to and part of this deed. ..... if there is a contract like the above, then it presents no difficulty in determining the existence of a partnership relation but where the agreement, which is supposed to evidence a partnership relation, is uncertain in its terms, then it becomes difficult to determine the existence or non-existence of a partnership relation. ..... a minor is incompetent to contract and, as such, there could not have been a reunion in that case and since the minors were partners in the firm and their shares were also not specified, the agreement of partnership was held to be incapable of registration. .....

D.N. Dastur and Co. Vs. Eleventh Income-tax Officer

Court : Income Tax Appellate Tribunal ITAT Mumbai

Reported in : (1986)16ITD499(Mum.)

..... the short issue in the instant case before us is whether there is a firm which could be said to be by an agreement under the indian partnership act, 1932. ..... 'partnership' as defined by section 4 of the indian partnership act, means the relationship between persons who have agreed to share the profits of a business carried by all or any of them acting for all. ..... 's case (supra), the supreme court held that the legal requirements, under section 4 of the partnership act to constitute a partnership in law, are : (i) there must be an agreement to share the profits or losses of the business; (ii) the business must be carried on by all the partners or any of them acting for all; and (iii) there is implicit in the second requirement the principle of agency. ..... 's case (supra) we can come to the one and the only conclusion that the firm is a genuine firm, as all the requirements as are contained in section 4 have been fully complied with by the firm to constitute a valid partnersnip agreement.as regards form no. ..... 140 and 144 on the 5th floor of the new stock exchange building at dalai street, bombay-400023 and/or at such other place or places as the parties hereto may mutually agree upon.therefore, the requirements of section 4 are complied with in the above-mentioned partnership deed.6. ..... he had examined shri pardawala under section 131 of the income-tax act, 1961 ('the act') who had categorically stated that he was a partner with effect from 1-1-1976 and remained so till 30-9-1977. .....

D.M. Ghia Vs. Second Income-tax Officer

Court : Income Tax Appellate Tribunal ITAT Mumbai

Reported in : (1984)10ITD163(Mum.)

..... on section 11 of the indian partnership act, 1932 and clause 9 of the partnership deed. ..... has also made a reference to section 11 of the partnership act. ..... background of fact that the assessee has a debit balance, the question would be how the receipts which are credited to his account is to be treated we are of the opinion that section 60 of the indian contract act, 1872, containing the rules of appropriation would be applicable. ..... heard shri gautam doshi for the assessee and shri mahadeshwar for the department.what is the scope of section 80v is the first issue to be decided.according to the ito, the section is applicable only for tax payments effected from borrowals after 1-4-1976 i.e. ..... , whether the assessee is entitled to deduction under section 80v of the income-tax act, 1961 ('the act') of the interest debited to his account in the books of the firm in which he is a ..... for the assessment year 1976-77t the ito held that under section 80v only borrowals made for payment of taxes after 1-4-1976 would be eligible ..... he agreed with the ito on the interpretation of section 80v also-the allowance under this section would be limited to only such interest as is payable on the borrowings made for taxes paid after ..... submitted before him that the ito cannot put in his own interpretation of section 80v since the commissioner in his order under section 264 has accepted in principle the claim. ..... partnership is a certain relation between persons, the product of agreement to share the profits of .....

L.M.S. Tool Room Vs. First Income-tax Officer

Court : Income Tax Appellate Tribunal ITAT Mumbai

Reported in : (1986)16ITD643(Mum.)

..... , the existing partnership concern registered under the indian partnership act, 1932.shri niranjan b. ..... this deed of partnership was sought to be registered under section 26a of the indian income-tax act, 1922, the application being signed by the same five individuals. ..... the number of partners of the firm which was partner in the assessee-firm and their names were not disclosed in the partnership deed of the assessee-firm.according to the partnership deed the said firm was entitled to a share of seven anas in a rupee and was liable to bear the same share in the losses of the firm. ..... in the present case also one of the partners is a firm and the deed of partnership has been signed by a partner of the said firm and the application for registration has not been signed by all the partners of the firm, which is a partner. ..... the supreme court held that no question could arise of the registration under section 26a of a partnership purporting to be one between three firms, a hindu undivided family business and an individual and that even assuming that a valid partnership had been constituted as all the members of the three firms had not personally signed the application for registration, it was not in proper form under rule 2 of the income-tax rules, 1962. ..... consequently, a partner may enter into sub-partnership with others or he may under an agreement, be the representative of a group of persons or he may be a benamidar for another. .....

Ramanlal I. Joshi Vs. Ninth Income-tax Officer

Court : Income Tax Appellate Tribunal ITAT Mumbai

Reported in : (1983)4ITD364(Mum.)

..... business does not specifically include profession but it is an inclusive definition.section 2(23) defines a 'partnership' as having the same meaning as assigned to it under the indian partnership act, 1932. ..... section 4 of the indian partnership act, 1932 defines a firm to be a relationship between persons who have agreed to share the profits of a business carried on by all or by some of them on ..... his point was that under section 4 of the partnership act, 1932, it is not necessary that each and every partner should be technically qualified to carry on the business or profession ..... of carrying on a profession can be regarded as 'business' within the meaning of section 4 of the partnership act, 1932. ..... consequently, a valid partnership as per section 4 of the partnership act was created by ..... business' is defined under section 2(b) of the partnership act as including profession or vocation ..... essential ingredients of a valid firm under the partnership act is that the firm should carry on business. ..... for the purpose of the partnership act, it is enough if a single partner is qualified to carry on the activity of the firm.the other partners can be financing ..... the only ground on which the claim of the assessee has been rejected is that the deed dated 14-6-1976 did not bring into existence ' a partnership which is valid in the eyes of law, because all the partners were not technically qualified to carry on the business of the firm. ..... section 2(13) of the act defines 'business' as including 'trade, .....

Empire Estate Vs. Third Income-tax Officer

Court : Income Tax Appellate Tribunal ITAT Mumbai

Reported in : (1992)41ITD23(Mum.)

..... section 2(23) gives the same meaning to the expressions "firm", "partner" and "partnership" as are respectively assigned to them in the indian partnership act, 1932 ..... where he has made no such return after the expiry of the time allowed by the notice under sub section (2) of section 139 or under section 148 for the making of the return.we find that in the instant case assessee (new firm) has duly ..... this view, after considering the effect of proviso inserted to section 187(2) by the taxation laws (amendment) act, 1984 (67 of 1984), with retrospective effect from 18th ..... the opinion, that where the firm is dissolved either by operation of law or by act of parties and thereafter a new firm is formed or old firm is reconstituted so as to include one or more partners of the old firm, there is a succession of one firm by another firm as contemplated by section 188 and such a case could not be governed by section 187. ..... by operation of law or by act of parties and is succeeded by another firm which has, as its partners, one or more partners of the former firm, the question arises whether in such a case there is change in the constitution of the firm as defined in section 187(2) or it is a case of succession covered by section 188? 14. ..... provision of section 124(5)(b) of the income-tax act, prohibits ..... section 124(5)(6), as it stood, prior to amendment (by direct tax laws (amendment) act, 1987 with effect from 1-4-1988) is reproduced hereunder : (5) no person shall be entitled to call in question .....

Smruti Trading Company Vs. Income-tax Officer

Court : Income Tax Appellate Tribunal ITAT Mumbai

..... of the it act says that the expressions "firm", "partner" and "partnership" shall have the meanings respectively assigned to them in the indian partnership act, 1932, with the only exception that the expression "partner" would also include a minor admitted to the benefits of the partnership. ..... the interest was being paid to the karta in his individual capacity in respect of amounts lent by him to the firm, the same was being disallowed under s. 40(b) by applying the strict legal principle under the partnership law that though he represents his joint family, he was a partner only in his individual capacity and, therefore, whatever interest was paid, irrespective of the source of the funds, to him, fell to be disallowed ..... confess that at one point of time, we thought that the order of the cit should be upheld, but on a closer and deeper examination of the legal position, such as the impact of the partnership law on the income-tax law and the judgments of the supreme court on the subject, we came to the conclusion that the disallowance under s ..... very nature of its fluctuating composition consisting of members, some of whom may not have attained the age of majority and some may not be born at a given time, the family as a unit is incapable of entering into a partnership agreement contemplating the creation of mutual rights of agency amongst its members. ..... is because the huf is not a juristic person for all purposes and is incapable of entering into an agreement with any another person or huf. .....

Mafatlal Holdings Ltd. Vs. Additional Commissioner of

Court : Income Tax Appellate Tribunal ITAT Mumbai

Reported in : (2004)85TTJ(Mum.)821

..... ) 29 itr 535 (sc), the hon'ble supreme court held that section 4 of the indian partnership act, 1932, clearly requires the presence of three elements to constitute a firm namely (i) that there must be an agreement entered into by two or more persons; (ii) that the agreement must be to share profits of business; and (iii) that the business must be carried on by all or any of those persons acting for all. ..... made reference to the definition of business given in section 2(13) of the act and has stated that business includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture.3. ..... therefore, concluded that there was no business activity in the case of this company during the assessment year under consideration.the ao referred to the provisions of section 28 of the act and has stated that salient features of any business or trade or commerce should be as follows : the ao has thus stated that the business connotes any adventure or concern in the nature of trade, commerce or manufacture. ..... (a) also referred to the decision of the supreme court in the case of howrah trading co.ltd. v. ..... in shares of companies carrying on tea business would never be said to be part of its business income because investment in shares were not incidental to the assessee's business activities and they were not held as trading assets. ..... that the dividend income, if taxable, may partake the character of business income, if the shares are held on stock-in-trade. .....