Partnership deed registration may stand without every partner's signature if the instrument truly reflects the firm's agreed constitution.

A partnership firm may be registered under the Income-tax Act even if the partnership instrument was not executed by every person shown as a partner, provided the document genuinely evidences the firm's constitution and the partners' assent to the arrangement. The revenue may examine whether the instrument reflects the real transaction and whether the absent signatory had assented before registration. Where that assent is established, the instrument remains capable of registration. The stated conclusion is that a mere objection based on one partner's absence of signature does not bar registration if the agreement otherwise represents the true partnership arrangement.

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Issues: Whether a partnership firm could be registered under the Income-tax Act when the partnership instrument was not executed by one of the persons shown as a partner, but the document otherwise evidenced the agreement and constitution of the firm.

Analysis: The requirement was that the firm must be constituted under an instrument, but the provision did not compel the instrument to be signed by every partner in every case. A firm may be constituted under an agreement even if the agreement has not been executed by all the partners, provided the instrument is genuine and represents the real arrangement. The revenue could examine whether the transaction evidenced by the instrument was and whether the absent signatory had assented to it before it was presented for registration. On the facts, if such assent was established, the document was capable of registration.

Conclusion: The objection to registration failed and the instrument was admissible to registration if the deceased partner had assented to it.

Final Conclusion: The reference was answered in favour of the assessee and costs were awarded accordingly.

Ratio Decidendi: A partnership instrument need not be signed by every partner to support registration if it genuinely constitutes the firm and is shown to reflect the partners' assent to the arrangement.

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