(1.) These two appeals pursuant to a certificate granted by the High Court of Mysore under S. 66A (2) of the Income-tax Act, 1922, are directed against its judgment answering the question referred to it in favour of the respondent-assessee. The question referred to is:
(2.) The respondent M/s. Shah Mohandas Sadhuram, hereinafter referred to as the assessee is a firm. The assessee claimed registration under S. 26-A of the Indian Income-tax Act on the strength of a Partnership Deed executed on April 1, 1952. As the answer to the question in part turns on the construction of the deed, the relevant clauses may be set out here. The partnership deed first describes the parties and then recites:
(3.) For the assessment year 1953-54, the Income-tax Officer rejected the application for registration on the ground that "in the case of the assessee, the minors are made parties to a contract by the eldest brother acting on their behalf. The minor has actually been debited with a share of loss. Taking these facts into account, I hold that the partnership is not entitled to the benefits of registration". For the assessment year 1954-55, he also rejected the application but added this further ground that "a supplementary deed of partnership extending the life of the partnership beyond 1-4-1953 for a further period at the will of the partners is filed. This is on 10 annas stamp paper. (The supplementary deed rests on cl. 10 of the original deed). I have already held that the original deed is not registrable. The supplementary deed cannot confer any fresh rights in the matter."