COMMISSIONER OF INCOME TAX Vs. JUPITER CONSTRUCTION CO.

JUDGEMENT

(1.) THIS is a reference under s. 256(2) of the IT Act, 1961 (the Act), made by the Tribunal, Ahmedabad Bench 'A', at the behest of the CIT, Gujarat -III, Ahmedabad. The following question of law has been referred for the opinion of this Court :

(2.) THE respondent -assessee is a registered firm and the relevant accounting year is the year ended on 31st March, 1983. It appears from the facts recorded by the Tribunal that the assessee -firm was brought into existence on 2nd June, 1980, wherein apart from three individuals, viz., Shri Hasmukhlal Chinubhai, Shri Bipinchandra Mafatlal and Shri Natwarlal Trikamlal the other three partners were trustees of private trusts, viz., Shri Upendra Chinubhai, trustee of Hetal Trust, Smt. Smruti Hasmukhbhai, trustee of Bijal Trust and Smt. Shantaben Chinubhai, trustee of Shalin Trust. The said firm was granted registration under s. 185 of the Act by order dt. 18th Feb., 1984, when the said partnership firm was assessed for asst. yr. 1981 -82.

(3.) THE said order came to be challenged by way of appeal before the AAC, AR - III, Ahmedabad, who, for the reasons stated in the order dt. 12th June, 1985, allowed the appeal and directed the AO to allow the registration to the assessee -firm.