Registration of a partnership firm does not bar assessment of real income when profits belong to the true owner.

Registration of a partnership firm under section 26-A of the Indian Income-tax Act, 1922 affected only the firm's procedural status and the tax consequences flowing from registration; it did not alter the charging scheme requiring assessment of an individual's true total income. Where the Tribunal found that the assessee's son was only a name-lender and the profits standing in his name ly belonged to the assessee, the Income-tax Officer was entitled to disregard the nominal entry and assess the real owner. Sections 26-A, 14(2)(b), 48 and 55 did not create any estoppel against assessment of the assessee's correct income.

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Issues: Whether registration of a partnership firm under section 26-A of the Indian Income-tax Act, 1922 prevented the Income-tax Officer from including in the partner's assessment profits which, on the facts found, really belonged to the assessee and were shown in another's name.

Analysis: Registration of a firm under section 26-A is concerned with the procedural status of the firm and the advantages flowing from registration, including the consequences relevant to the assessment of the firm and the partners. It does not alter the charging scheme of the Act, under which the individual is liable to tax on his total income. The Tribunal had found that the assessee's son was merely a name-lender and that the share standing in his name belonged to the assessee. On that footing, the Income-tax Officer was entitled to look through the nominal entry and assess the real owner. Nothing in sections 26-A, 14(2)(b), 48 or 55 created an estoppel against correct assessment of the assessee's true income.

Conclusion: Registration under section 26-A did not prevent or estop the Income-tax Officer from taxing the assessee on the full profits found to belong to him.

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