COMMISSIONER OF INCOME TAX Vs. MASKARA TEA ESTATE

JUDGEMENT

(1.) THIS is a reference under S. 256(1) of the IT Act, 1961, hereinafter referred to as the Act.

(2.) THE following question of law has been referred by the Tribunal:

(3.) A partnership deed was executed on April 1, 1960, among Dakhi Devi, Nathmal Agarwalla, Durga Prasad Agarwalla and Meghawati Devi. The partnership was styled as Maskara Tea Estate. Thereafter, on July 25, 1960, by a registered sale deed executed by Daluram Agarwalla, Dakhi Devi, Nathmal Agarwalla, Durga Prasad Agarwalla on behalf of himself and his minor sons, Dinesh and Pradip, and Meghawati Devi, Maskara Tea Estate, which was owned by the above -mentioned two Hindu undivided families, was transferred in favour of the partnership, M/s Maskara Tea Estate, which came into existence under the partnership deed dated April 1, 1960. The sale deed dated July 25, 1960, was registered on July 28, 1960. It may be observed here that there was no application for registration of the partnership under the Act for the asst. year 1961 -62. There was, however, an application for registration for the asst. yrs. 1962 -63 and 1963 -64 and for those two years registration was allowed.