True nature of relationship controls partnership status for tax registration; profit-linked pay alone does not create mutuality.

Partnership for agricultural income-tax registration must be tested by the true relationship of the parties on the whole of the evidence, not by the label used in the instrument. Where one brother retained ownership and control of the estate, the other had no power to contribute, charge, or deal with capital, and management remained under the senior brother's authority, the arrangement was consistent with a principal-agent or master-servant relationship rather than a genuine partnership. Profit-linked remuneration and the absence of an express loss-sharing clause did not by themselves establish mutuality in business. The document therefore did not create a partnership in law, and refusal of registration was justified.

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Issues: Whether the document relied upon by the assessee created a partnership between the brothers for the purpose of registration under the agricultural income-tax law.

Analysis: The determination of partnership depends on the real relationship between the parties as shown by all relevant facts. The deed, read with the conduct of the parties, showed that the senior brother retained ownership and control over the estate, the junior brother had no power to contribute to, charge, or deal with the capital, and management remained under the senior brother's authority. The remuneration arrangement, contingent on profits, and the absence of provision for sharing losses did not by themselves establish partnership. The surrounding circumstances pointed to a continuing principal-agent or master-servant relationship rather than a genuine partnership.

Conclusion: The document did not create a partnership in law, and the refusal to register the firm was justified.

Final Conclusion: The appeal was dismissed because the assessee failed to establish that the arrangement amounted to a true partnership for tax purposes.

Ratio Decidendi: Existence of partnership must be determined from the true relationship of the parties on the whole of the evidence, and profit-linked remuneration or formal description as a partnership deed does not establish partnership where the parties' conduct and terms of the instrument show continued control by one and no real mutuality in the business.

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