Court : Jammu and Kashmir
Decided on : Sep-11-1979
Reported in : (1980)14CTR(J& K)341,[1981]130ITR636(J& K)
Farooqi, J. 1. The assessee is a partnership firm. The firm was formed under the partnership deed dated March 25, 1970, with effect from April 1, 1969. The firm consisted of six partners. By an oral arrangement between the partners, a new partner, namely, Firdoos Ahmad Bhat, was taken in on February 22, 1972. The new arrangement was evidenced in writing by a document styled as a 'partnership deed' executed on 27th day of March, 1972, by the existing partners and the new partner, who was taken in. The relevant clauses of the deed dated March 25, 1970, are as follows:'6. The net profits of the partnership shall be divided amongst the partners and the net losses shall also be borne by them in the following proportion : Party No.1 (Gh.Ahmad Khan)24%Party No.2 (Gh.Rasool Bhat)33%Party No.3 (Mohd.Amin Khan)11%Party No.4 (Mohd. ShafiKhan)11%Party No.5 (Gh.Mohi-ud-din)11%Party No.6 (AbdulHamid Khan)10%100% 7. The accounts of the partnership shall hithertofore be maintained on mercantile basis ...
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