COMMISSIONER OF INCOME TAX Vs. NARAYANLAL DARAK

JUDGEMENT

(1.) THIS is a reference under Section 66(1) of the Indian Income-tax Act (XI of 1922) and arises out of an application made under Section 26-A of that Act by the respondent, M/s. Narayanalal Darak, hereinafter called the assessee firm, to the Income Tax Officer, Special Survey Circle, Hyderabad. The question referred is "whether the assessee firm is entitled to registration for the assessment year 1958-59?".

(2.) THE assessee firm was constituted under a deed of partnership dated 6-12-1956 to do business in kapas, cotton, cotton seed etc., and was duly registered with the registered of firms on 10-6-1957. THE document states the names of the partners, their initial contributions of the capital and their shares of the profits and losses as follows:-

(3.) IN R. C. Mitter and Sons v. Commr. of INcome-tax, (1959) 36 ITR 194 at p. 198: (AIR 1959 SC 868 at p. 871) the Supreme Court considered the relevant provisions of the Act relating to registration of firms and speaking through Sinha, J. (as he then was) said: