Construction of Income Tax Rules: notation of profit shares and P-mark satisfies form requirements; Part B applies only after year-end.

Clarifies construction of the Income Tax Rules governing registration forms: entries specifying each partner's share in profits and a notation indicating partners entitled to profits but not liable for losses satisfy Note 2 and the Schedule's requirements, so no separate recalculation of remaining partners' loss shares is required. Confirms that Part B particulars are only mandated when the application is filed after the end of the relevant previous year; where filed before that date Part B is inapplicable. Effect: the 17 November 1953 registration application was treated as compliant with the Rules.

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Issues: Whether, on a true construction of the Income Tax Rules, the application for registration of the firm presented on 17 November 1953 was defective.

Analysis: The Schedule to the application requires entry of each partner's share in the balance of profits in column 6 and, by Note 2, a letter "P" against the name of any partner entitled to share in profits but not liable for corresponding losses. No separate entry or recalculation of the remaining partners' shares in losses is mandated by the form or the Rules. The entries actually made-specifying shares in profits and indicating by notation that two partners were admitted to the benefits of the partnership-fulfilled the purpose of Note 2 and complied with the form's directions. The requirement to supply particulars in Part B of the Schedule applies only where the application is made after the end of the relevant previous year; the application in question was made before the end of that previous year, so Part B was not applicable.

Conclusion: The application for registration dated 17 November 1953 was not defective; the question is answered in favour of the assessee.

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