Law: Income Tax Act, 1922

Section: 6(1),26A

Income-tax Act (XI of 1921)- --S. 26-A--Partnership-Registration deed giving retrospective effect to partnership arrangement-Refusal of registration by Income-tax Officer-Held, unless finding recorded by Income-tax Officer that partnership deed was sham document, he could not refuse registration merely on ground that it purported to create a partnership prior to date of its execution. Commissioner of Income-tax v. Muhammad Qudratullah 1968 P T D 411 and Commissioner of Income-tax, North Zone, Lahore v. Rippon Printing Press, Lahore 1973 P T D 465 ref. JUDGMENT SAEEDUZZAMAN SIDDIQUI, J. -This reference relates to the assessment year 1970-71 and following question has been referred to us for decision by the Department under section 6(1) of the Income-tax Act, 1922: "Whether on the facts and in the circumstances of the case the Income ­tax Appellate Tribunal was justified in holding that a partnership deed giving retrospective effect to the partnership arrangement creates a valid partnership entitling it to registration under section 26-A of the Income-tax Act?" 2. The respondent which: ns a partnership firm was refused registration under section 26-A of the Income-tax Act try the Income-tax Officer for the assessment year 1970-71 can the ground teat the partnership deed was executed on 20-8-1969 while it purported to have come into effect from 1-8-1969. The Income-tax Officer while refusing registration of the respondent film relied on the case of Commissioner of Income-tax v. Mid Qudratullah 1968 P T D 411. The Income-tax Appellate Tribunal on appeal filed by the respondent reversed the decision of the income-tax Officer both on the ground that the ratio of decision in the Qudratullah's case relied by the Income-tax Officer did not apply to the facts of the present case, as well as on the ground that in the year 1965 by the Finance Act of that year which came into effect on 1st July, 1965, the registration of a partnership firm under section 26-A of the Income-tax Act became…

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