Strict compliance for firm registration under income-tax law requires signatures of all partners and timely prescribed application.

Registration of a firm under section 26A of the Indian Income-tax Act, 1922 depended on strict compliance with the statutory conditions. The partnership had to be evidenced by an instrument showing the partners' shares, the application had to be signed by all partners and filed in the prescribed manner and time, and the firm had to be genuine and constituted in accordance with the deed. Because one partner had not signed the deed or the application, and the application was not made within the prescribed time under rules 2 and 4 of the Income-tax Rules, 1922, the requirements for registration were not satisfied and registration was rightly refused.

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Issues: Whether the firm was entitled to registration under section 26A of the Indian Income-tax Act, 1922 despite the deed of partnership not being signed by one partner and the application for registration not complying with the prescribed rules.

Analysis: Registration of a firm under section 26A required strict fulfilment of the statutory conditions. The partnership had to be evidenced by an instrument specifying the partners' shares, the application had to be signed by all partners and made in accordance with the rules, and the firm had to be genuine and in existence in conformity with the instrument. On the facts found, one partner had not signed the deed or the application, and the application was not made within the time prescribed by rules 2 and 4 of the Indian Income-tax Rules, 1922. Those findings established non-compliance with the mandatory requirements for registration.

Conclusion: The firm was not entitled to registration and the refusal of registration was correct.

Ratio Decidendi: Registration of a firm under section 26A of the Indian Income-tax Act, 1922 can be granted only on strict proof of statutory compliance, including execution by all partners and a valid, timely application in the prescribed form.

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