Punjab-Haryana High Court
Commissioner Of Income-Tax vs Sonda Ram Ram Singh on 9 March, 1989
Equivalent citations: [1989]180ITR227(P&H)
JUDGMENT Gokal Chand Mital, J.
1. Prabhu Dayal attained majority on January 2, 1976, and he was admitted as a partner by virtue of the partnership deed dated January 11, 1976, with effect from April 1, 1975. While he was a minor, he-was only having the benefits of partnership. For the assessment year 1976-77, the partnership firm applied for the grant of registration to the partnership created, vide deed dated January 11, 1976, with effect from April 1, 1975. The Income-tax Officer declined registration on the ground that on April 1, 1975, Prabhu Dayal was a minor.
2. Finally, the Income-tax Appellate Tribunal, Chandigarh, allowed registration.
3. At the instance of the Revenue, the following question has been referred for opinion :
"Whether, on the facts and in the circumstances of the case, the assessee-firm is entitled to the grant of registration for the accounting period relevant to the assessment year 1976-77 ?"
4. Similar question arose before us in Income-tax Reference No. 89 of 1980 (CIT v. Jain Steel Rolling Mills [ 1989] 177 ITR 498 (P & H)), and following the earlier decision of this court in Jagadhri Electric Supply and Industrial Co. v. CIT [1987] 166 ITR 143, the point involved on the facts of the case was decided in favour of the assessee and it was held that if, during the accounting year, a minor becomes a major and is made a partner after attaining majority but from an earlier date when he was a minor, registration can be granted.
5. Following the aforesaid decisions, we are of the opinion that the Tribunal was right in granting registration, and we answer the referred question in favour of the assessee, in the affirmative.