- (1.) This appeal with leave under section 66 A of the Indian Income-tax Act (XI of 1922), hereinafter referred to as " the Act ", arises out of the refusal of the Income-tax authorities to register the appellant firm constituted under a deed of partnership dated 6.03.1946, under section 66A of the Act. A reference was made by the Income-tax Appellate tribunal under section 66(1) of the Act referring the following question of law to the High court of Assam; " Whether on the above facts and in the circumstances of the case the Tribunal was right in refusing the claim for registration of the assessee firm under section 26A of the Indian Income-tax Act." The High court answered the question in the affirmative and hence the appeal.
(2.) The deed of partnership dated 5.03.1946, :was entered into between nine partners, two of whom were Rameshwarlal Ajitsaria, son of Kissendayal Ajitsaria of No. 43/44' Cotton Street, Calcutta, representing the firm of Rarnswarup Maliram (of the first part) and Dwarkanath Himatsingka son of Mahadeolal Himatsingka deceased representing the firm of Ghasiram Dwarkadas, Gauhati (of the seventh part). The shares of the partners in the profit and loss of the business were Rs. 0-5-3 for the former and Rs. 0-2-0 for the latter. The work of the partnership was to be supervised and looked after inter alia by Rameshwarlal Ajitsaria, the partner of the first part and in the case of death of any of the partners his adult heirs, if they so desired, were entitled to be taken in as partners in place of the deceased and if they were not willing to join, the business was, to be carried on by the remaining partners and the deceased partner's heirs were to be paid the amount due to them as on the date of the death of such partner. It would appear that the said partnership deed was signed infer alia by Rameshwar Ajitsaria " for Rarnswarup Maliram " and by D. N. Himatsingka " representing Ghasiram Dwarkadas ".
(3.) The appellant firm thereafter made an application under section 66A of the Act for registration of the firm and this application also was signed amongst others by Rameshwar Ajitsaria " for Rarnswarup Maliram " and D. N. Himatsingka " representing Ghasiram Dwarkadas ". The original deed of partnership was enclosed along with the application.;