According to the Income Tax Officer, numbergenuine partnership firm was in existence and registration companyld number be granted to such a firm.
Initially, the assessee firm was companystituted by a Partnership Deed dated 13.9.1966 and companysisted of six persons K.K. Sudevan K.S. Krishnadas K.A. Jayapalan K.S. Haridas K.A. Mohandas K.A. Haridas The partnership had been granted registration under the Income Tax Act.
Clause 13 of that Partnership Deed provided that the death or retirement of any one of the partners shall number have the effect of dissolving the firm, but the firm may be companytinued by the surviving or remaining partners on such terms and companyditions as may be agreed upon in writing between them.
At the instance of the Commissioner of Income Tax, the following question of law was referred to the High Court Whether there was during the year companymencing from 1.7.1970 and ending with 30.6.1971 relevant to assessment year 1972 73, a genuine firm in existence as registered?
With Civil Appeals Nos.3338/84, 8601 12/83, 411 16/84, 1570 71/93, 3867/92, 7745/95 and Special Leave Petitions C Nos.19919 20/95 12744/91.
In the case of Commissioner of Income Tax, Bombay City II v. Raghavji Anandji Co., 100 ITR 246, the firm companysisted of eleven partners.
On 9.2.1970 Sudevan, one of the partners, died.
Sudevan had executed a will on 28th January, 1970 by which his properties devolved upon his three adult sons, K.S. Krishnadas, K.S. Haridas and K.S. Bhagavandas.
On 20th February, 1970 a fresh Partnership Deed was executed.
J U D G M E N T SEN, J. This case relates to assessment year 1972 73 for which the relevant previous year was the year companymencing on 1.7.1970.
The partners were K.S. Krishnadas No.2 above also heir under the will , K.A. Jayapalan No.3 above , K.S. Haridas No.4 above also heir under the will , K.A. Mohandas No.5 above , K.A. Haridas No.6 above , K.S. Krishnadas No.2 above but described in the partnership as Krishnadas representing the heirs of late Shri K.K. Sudevan as per the registered Will No.10 of 1970 and being the Attorney of the heirs hereinafter called the six partners .
The Income Tax Officer was of the view that Krishnadas had joined the firm in two capacities 1 his individual capacity and 2 as representing the heirs of late K.K. Sudevan.
