Commissioner Of Income-Tax vs Ghulam Ahmad Khan And Bros. on 11 September, 1979
We heard counsel. We concur with the Income-tax Appellate Tribunal in holding that Mayankutty became a partner only on August 25, 1975, on the date when the deed was entered into. All that clause 2 of the deed provided was that the firm is to take accounts back to the date, April 1, 1975. It only means that for taking accounts, the transactions from April 1, 1975, should be looked into. This is permissible in view of the decision in Wadingtons case [1931] 16 TC 187 (KB) (at p. 197) and as held by the Jammu and Kashmir High Court in CIT v. Ghulam Ahmad Khan and bros. [1981] 130 ITR 636, 642.