Partnership registration depends on genuine beneficial shares; evidence supported refusal where the deed did not reflect a real firm.

For income-tax registration, the authorities could examine whether a partnership deed reflected a genuine firm and the real beneficial shares of the partners. Where the deed was altered to avoid the effect of an amended provision concerning shares of a wife and minor son, and there was no proof that the alleged new partner contributed capital, knew the business, or otherwise participated, the finding of non-genuineness was supportable on evidence. On that basis, registration could properly be refused, and the court sustained the Revenue's view.

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Issues: Whether there was evidence to justify the finding that the partnership deed did not represent a genuine partnership and that registration of the firm could therefore be refused.

Analysis: Registration under the income-tax law was available only to a firm constituted under an instrument of partnership specifying the individual shares of the partners. The authorities were entitled to examine whether the deed truly reflected the partnership and whether the stated shares were the real beneficial shares. The record showed that the alteration in the deed was made to avoid the effect of the amended provision relating to the shares of a wife and minor son, and the Assistant Commissioner relied on the absence of proof that the new partner had contributed capital, had business knowledge, or had otherwise participated in the firm. On that material, it could not be said that there was no evidence supporting the conclusion reached.

Conclusion: The finding that the partnership was not genuine was supported by evidence, and the answer to the reference was in the affirmative.

Final Conclusion: The firm was not entitled to registration on the footing asserted in the deed, and the Revenue's view was sustained.

Ratio Decidendi: For registration of a firm, the authorities may examine whether the partnership deed reflects the true and genuine beneficial shares of the partners, and a finding that it does not will stand if supported by some evidence.

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