Prakash Krishna, J. - (1.) The Income-tax Appellate Tribunal, Allahabad, has referred the following question for the opinion of this court at the instance of the Commissioner of Income-tax, Allahabad, for the assessment year 1977-78 : "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in directing the Income-tax Officer to grant registration to the assessee-firm ?"
(2.) The facts of the case are as follows : The assessee-respondent filed an application for registration of the firm for the year 1974-75 along with the instrument of partnership deed dated September 22, 1973. In the partnership deed the following persons are partners : (1) Badri Prasad 19 paise in a rupee (2) Ganga Ram 25 paise in a rupee (3) Shankar Lal 19 paise in a rupee (4) Jamuna Prasad 25 paise in a rupee (5) Gopi Nath 06 paise in a rupee
(3.) Besides the above partners one Lakhan Lal (minor) was admitted to the benefits of partnership to the extent of six paise in a rupee and has been made liable to the losses of the firm although his liability was limited to the extent of his share. The Income-tax Officer refused to grant registration to the firm on the ground that the minor Lakhan Lal was made liable for the losses of the firm to the extent of his share therein. He was of the opinion that the minor admitted to the benefits of partnership cannot be made liable to the losses of the firm. Consequently, the order rejecting the registration was passed under Section 185(1)(b) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). The said order was set aside in appeal by the Appellate Assistant Commissioner. He was of the view that the assessee-firm was formed in accordance with the provision of Section 30(3) of the Partnership Act while making the minor liable to share the losses of the firm. The Tribunal has confirmed this order.;