Court : Income Tax Appellate Tribunal ITAT Ahmedabad
Decided on : Aug-19-1991
Reported in : (1991)39ITD21(Ahd.)
..... not material. what is material is the nature of activity of the firm. under section 2(23) of the it act the words "firm", "partner" and "partnership" have the meanings respectively assigned to them in the indian partnership act, 1932.section 4 of the said act defines expression "partnership" as a relation between persons who have agreed to share the profits of a business carried on by all ..... or any of them acting for all. the definition in the partnership act indicates that what all that was necessary was that the business should be carried on ..... such activity could be termed as business activity, the firm could be regarded to be carrying on business and such a firm would be valid both under the partnership act, 1932 and under the it act, 1961. in the present case the activity for which the assessee firm has been constituted would amount to business activity and as such the assessee-firm was valid ..... . it was immaterial as to under what head the particular income in a particular year was assessable under the it act. what is necessary to be seen is whether the entire .....Tag this Judgment!