Genuine sub-partnerships may qualify for registration under the Income-tax Act when statutory requirements are met.

A genuine sub-partnership is a recognised legal arrangement and may be registered under the Income-tax Act if the statutory requirements are satisfied. The Court held that questions concerning the devolution of a deceased partner's interest and whether the share constituted joint family property did not arise from the Tribunal's order and therefore were not answered. On the surviving issue, the Tribunal's view that the sub-partnership was genuine and registrable was upheld, with the reference answered in favour of the assessee only to that extent.

---

---

Issues: Whether the Tribunal was correct in holding that there was a genuine sub-partnership entitled to registration.

Analysis: The questions relating to devolution of the deceased partner's interest and the character of the share as joint family property were held not to arise from the Tribunal's order and were declined to be answered. On the surviving issue, the Tribunal had applied the settled principle that a sub-partnership is a recognised legal concept and that such a sub-partnership may be registered under the Income-tax Act when otherwise genuine.

Conclusion: The answer on the surviving issue was in the affirmative and in favour of the assessee; the reference was answered only to that extent.

Final Conclusion: The judgment upheld registration of the sub-partnership while declining to answer the two questions that did not arise from the Tribunal's order.

Ratio Decidendi: A genuine sub-partnership recognised in law is entitled to registration under the Income-tax Act if the statutory requirements are satisfied.

---