COMMISSIONER OF INCOME TAX Vs. AGARWALLA AND COMPANY

JUDGEMENT

(1.) THESE are two applications under Section 256(2) of the Income-tax Act of 1961 (hereinafter referred to as "the Act") at the instance of the revenue for a direction to the Income-tax Appellate/Tribunal to state a case and refer the following question said to be of law for determination of this court:

(2.) THE short facts relevant for appreciating the point raised are these : One, Sri Jugal Kishore Ram was carrying on business in timber as its sole proprietor in the name and style of " M/s. Agarwalla & Co." With a view to converting the proprietary concern into a partnership business, one Shri Raghunath Agarwalla was admitted into the business and by a deed of partnership dated April 1, 1964, the partnership was constituted. An application for registration of the firm as provided under Section 185 of the Act was made. THE Income-tax Officer rejected the same and the rejection was upheld by the Appellate Assistant Commissioner, but, on further appeal by the assesaee, the firm was directed to be registered.