Ajit K. Sengupta, J. - (1.) In this reference under Section 256(1) of the Income-tax Act, 1961, the following questions of law have been referred to this court for the assessment year 1976-77 : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that as the assessee was only investing funds in shares, it was not doing business ?
(2.) If the answer to the above be in the affirmative, whether the Tribunal was justified in refusing registration to the firm on the ground that the assessee was doing no business ?" 2. The brief facts obtaining in the case are that the business of the assessee-firm is said to be investment in shares and finance as per the objects mentioned in the deed of partnership. The deed of partnership was made on April 20, 1975, constituting a firm consisting of ten partners and admitting one minor to the benefits of partnership to start business:
(3.) In respect of the previous year relevant to the assessment year 1976-77, the assessee-firm claimed registration under Section 185 of the Act for which Form No. 11 was filed in time. The Assessing Officer declined to allow the registration, as he came to the conclusion that there was no business carried on by the firm this year. He passed the order after obtaining the necessary direction under Section 144B from the Inspecting Assistant Commissioner who observed as follows : "The firm does not appear to be registered with the Registrar of Firms, there does not appear to be any bank account opened in the name of the firm, there is no trade licence to do any business.";