COMMISSIONER OF INCOME TAX Vs. RAMESHWAR DAYAL RATANLAL

JUDGEMENT

(1.) BY this reference under Section 256(1) of the Income-tax Act, 1961, the Appellate Tribunal, Patna Bench, has referred the following question for our opinion:

(2.) IN this reference, we are concerned with the assessment year 1967-68. The assessee is a partnership firm. It applied for registration in terms of Section 185 of the Act. The INcome-tax Officer (to be called "ITO") rejected the claim of the assessee to be registered as a firm on the ground that there was no partnership. The matter was taken up in appeal and the AAC reversed the finding of the ITO. The AAC held that the facts showed that there was a partnership deed validly executed and filed within time. He, therefore, set aside the order of the ITO and allowed the application for registration. The Department filed appeal before the Appellate Tribunal against the order of the AAC. The Tribunal upheld the order of the AAC. Thereafter, the Department got this reference made to us for our opinion.