Partnership registration requires a deed that expressly states each partner's profit and loss shares during the relevant year.

Registration under section 26A required a partnership instrument in force during the relevant accounting year to expressly specify each partner's individual shares in profits and losses. The original deed did not do so, and clauses dealing with capital, interest, remuneration, or distribution on dissolution were insufficient to satisfy that statutory requirement. A rectification deed executed after the close of the accounting year could not cure the deficiency for that year. The firm was therefore not entitled to registration, and refusal of registration was justified.

---

---

Issues: Whether the assessee-firm was entitled to registration under section 26A for the assessment year 1955-56 when the original partnership deed did not specify the individual shares of the partners and the shares were later stated in a rectification deed.

Analysis: Registration under section 26A was available only to a firm constituted under an instrument of partnership specifying the individual shares of the partners. The partnership deed in force during the relevant accounting year contained no express specification of the partners' shares in profits and losses. The later rectification deed, executed after the close of the accounting year, could not satisfy the statutory requirement for that year. The clauses relied on by the assessee related to capital contribution, interest, remuneration, or distribution on dissolution, but they did not set out the partners' shares in profits and losses.

Conclusion: The assessee-firm was not entitled to registration under section 26A, and the refusal of registration was justified.

Ratio Decidendi: A firm is entitled to registration only if, during the relevant accounting year, it is constituted under an instrument of partnership that expressly specifies the individual shares of the partners.

---