Referable question of law arises where firm registration depends on disputed guardian assent for a minor's partnership benefits.

A referable question of law arose where the legality of firm registration depended on whether a minor's admission to partnership benefits was cured by the guardian's later assent. The Tribunal had upheld registration on the view that any initial defect in the partnership deed stood remedied, but that approach was supported and opposed by conflicting High Court decisions on whether the guardian must sign the deed or otherwise assent at the time of admission. Because the issue involved a genuine legal controversy with divergent judicial opinion, the Tribunal was required to refer the questions framed by the Revenue.

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Issues: Whether a question of law arose from the Tribunal's common order so as to justify a direction to refer the questions framed by the Revenue under the agricultural income-tax reference provision.

Analysis: The Tribunal had upheld registration of the firm on the footing that the minor's guardian had subsequently assented to the minor being admitted to the benefits of the partnership and that any initial defect in the partnership deed stood cured. The Court noted that the correctness of that approach was supported and opposed by conflicting High Court decisions on whether the guardian must sign the deed or otherwise express assent at the time of admission of the minor. In view of the divergence of judicial opinion and the legal controversy involved, the matter gave rise to a referable question of law.

Conclusion: A question of law did arise, and the Tribunal was required to refer the two questions framed by the Revenue.

Ratio Decidendi: Where the legality of registration of a firm turns on a disputed legal issue on which courts have expressed differing views, the matter constitutes a referable question of law.

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