1980 TAX. L. R. 224 ::(1979) 12 CurTaxRep 293 ::(1979) 120 ITR 644 ::(1979) 120 ITR 640 ::(1980) 1 I T J 250 ::(1979) 2 Taxman 438 (Ker) ::(1979) 2 Taxman 438 ::(1979) ILR(ker) 2 KER 313 ::ILR (1979) 2 Ker 313

Kerala High Court

Hon'ble Judge(s): V P Gopalan Nambiyar , C.J. AND G. Balagangadharan Nair , J

(A) Income-tax Act (1961) , S.184, S.185, S.186— Partnership Firm - Registration - Cancellation of - Reconstitution of Firm on death of a partner - One Partner signing in dual capacity as existing partner and as representing heirs of the deceased - Not illegal. (Partnership Act (1932), , Section 37)— A clause in a partnership deed provided that the death or retirement of any of the partners would not operate to dissolve the firm, but that the firm may be continued by the surviving or remaining partners on such terms and conditions as may be agreed upon in writing between the partners. On death of a partner, the firm was reconstituted. One of the partners of the newly constituted firm was a son of the deceased partner and was also a partner himself of the firm prior to reconsti tution. He signed the new partnership deed in two capacities. one in his capacity as an existing partner and another as representing the heirs of his father the deceased partner. Held, the registration of the newly constituted firm could not be cancelled on ground that one partner has signed the partnership deed twice in dual capacity and as such there was no genuine firm in existence. Case law discussed.(Para 4 10) (B) Income-tax Act (1961) , S.256, S.184— Re....