R. B. ANGADI & SONS vs COMMISSIONER OF INCOME-TAX, MYSORE — 1971 PTD 793

Citation: 1971 PTD 793

Court: Mysore High Court

Year: 1970

Decision Date: 1970-12-31

Parties: R. B. ANGADI & SONS vs COMMISSIONER OF INCOME-TAX, MYSORE

Headnotes

Case cited as 1971 PTD 793

Judgment Text

Court Name: Mysore High Court Judge(s): Ahmed Ali Khan, A. R. Somnath Iyer Title: R. B. ANGADI & SONS vs COMMISSIONER OF INCOME-TAX, MYSORE Case No.: Case No. 28 of 1967 Date of Judgment:- Reported As: 1971 PTD 793 Result: order made JUDGMENT JUDGMENT SOMNATH IYLR, J.-This is a reference under section 66(1) of the Indian Income-tax Act, 1922, sought by the assessee which is a firm in Hubli. There were four partners in the firm and in the opinion of the Tribunal, the instrument of partnership, on its interpretation, specified only the shares of the partners in the profit and not their shares in the losses. So, it reversed the order made by the Appellate Assistant Commissioner and restored that made by the Income-tax Officer who refused registration under section 26-A of the Act. The two questions of law referred to us read: "(1) Whether for obtaining registration under the provisions of the Income-tax Act, 1922, it is necessary for a firm to specify the shares of the partners in losses also in the instrument of partnership, besides specifying the shares of profits ? (2) Whether, on a reasonable interpretation of clauses 3 and 7 of the instrument of partnership under which the assessee --firm was constituted, could it be said that the shares of the partners in losses have not been specified in the deed disentitling it from getting registration under the Income-tax Act?" If the first question is answered in favour of the assessee, as in our opinion it should be, the answer to…

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