Law:

Section:

JUDGMENT Hari Swarup, J.- The Income-tax Appellate Tribunal has, at the instance of the Addl. Commissioner of Income-tax, Kanpur, referred the following two questions of law for the opinion of this court : " (1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was legally justified in its conclusion that the partnership deed dated November 15, 1961, admitted the minors to the benefits of partnership and they were not full-fledged partners ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee-firm was entitled to registration under section 185 of the Income-tax Act, 1961 ? " The assessee-firm was constituted under a deed of partnership dated 15th November, 1961, with two major partners, viz., Kameshwar Dayal and Govardhan Das. Two minors, Uttam Kumar and Promod Kumar, were also alleged to be admitted to the benefits of this partnership. The Income-tax Officer held that according to the partnership deed the minors were not only admitted to the benefits of partnership but were made full-fledged partners and accordingly he came to the conclusion that the agreement was not registrable under section 185 of the Income-tax Act, 1961. The assessee went up in appeal, but the appeal was dismissed by the Appellate Assistant Commissioner. The assessee then went up in appeal before the Income-tax Appellate Tribunal. The Tribunal allowed the appeal holding that the partnership deed had created a valid partnership between the two major partners and had only admitted the two minors to the benefits of partnership. The Tribunal, therefore, directed the department to grant registration to the firm. The department, feeling aggrieved, got the aforesaid two questions referred for our opinion. The relevant clauses of the partnership deed are in the following terms : " 1. That the name of the partnership shall be Uttam Kumar Promod Kumar, Commission Agents, Auraiya, District Etawah, and the share of each party shall be as under: Rameshwar Dayal, party No. 1 0-4-0 out of a rupee Goverdhan Das, party No. 2 0-4-0 out of a rupee Uttam Kumar, party No. 3 0-4-0 out of a rupee Pramod Kumar,…

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