Bhagwati, J. - (1.) This appeal from the Judgment and Order of the High Court, Saurashtra, dated the 18th October, 1955 concerns the registration of two partnership firms under the provisions of the Saurashtra Income Tax Ordinance, 1949, corresponding to section 26A of the Indian Income Tax Act. Both the firms were named Patel and Co.
(2.) The firm with which we are concerned for the assessment year 1949-50 was the larger firm of Patel and Co., constituted by a Deed of Partnership dated the 6th February, 1948 and consisted of three partners (1) Patel and Co., (hereinafter called the Smaller Patel and Co.) (2) Sheth and Co., and (3) Maharshi Dayanand Maha Vidyalaya having shares of 0-7-6, 0-7-6 and 0/1/0 respectively in the profit and loss of the partnership. This Deed of Partnership was signed by Arjun Kunverjee Patel, a partner of Patel and Co., (Smaller Patel and Co.), Jamnadas Bhanji Patel, a partner of Sheth and Co., and Nanji Patel, a partner of Sheth and Co., and Nanji Kalidas Mehta, a Trustee of Maharshi Dayanand Maha Vidyalaya. In the application for registration which was made to the Income Tax Officer for registration of this firm the same position obtained and the application was signed by these respective parties in the manner above described. This firm was registered by the I. T. O. by his order dated the 6th June, 1951 stating that the partners as were existing had applied for registration giving reasons why others could not sign and as the reasons given in their statements were genuine and the partnership was genuine, registration should be granted.
(3.) In regard to the assessment year 1950-51, what was sought to be registered was the partnership firm of Patel and Co., which came into existence under the Deed of Partnership dated 12th July, 1949. This firm consisted of two Partners, Nanji Kalidas Mehta and Arjun Kunverjee Patel, the partners having 0-15-0 and 0-1-0 shares respectively in the profit and loss of the partnership. The Deed of Partnership was signed by both these partners and the application for registration made to the Income Tax Officer was also signed by them. This firm was also registered by the Income Tax Officer by his order dated the 6th June, 1951 on the very same grounds which were mentioned in regard to the firm which had been brought into existence by the Deed dated the 6th February, 1948.;