Valid loss-sharing ratio and factual proof of filing did not raise a referable question of law under registration rules

A partnership deed that allocates profit or loss in proportion to capital, without leaving any part of the loss unallocated, supports a valid loss-sharing arrangement for registration purposes; a reference to a minor's limited liability does not by itself create a defect in that arrangement. A finding that a registration application was filed, when drawn from surrounding circumstances and the absence of direct departmental records, remains a factual conclusion and does not automatically raise a question of law. On that basis, the reference applications were rejected because the issues were either decided against the assessee or did not disclose any referable question of law.

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Issues: (i) Whether the assessee was entitled to registration for the relevant assessment year in view of the partnership deed and the alleged loss-sharing ratio. (ii) Whether a question of law arose from the finding that the registration application had been filed, based on circumstantial evidence and the absence of direct departmental records.

Issue (i): The partnership deed provided that profit or loss was to be shared in proportion to capital, and the deed did not contain any term leaving a part of the loss unallocated. The reference to the minor's limited liability did not create a void in the loss-sharing arrangement. The presence of a valid loss-sharing ratio was therefore ant to the claim for registration.

Conclusion: The assessee was not entitled to succeed on this issue, and no referable question of law arose from the finding on loss-sharing ratio.

Issue (ii): The finding that the registration application had been furnished was based on appreciation of facts and surrounding circumstances. The absence of the original application from departmental files did not convert that factual finding into a question of law, and mere refusal to accept an imaginary or unsupported reading of the document did not itself generate a legal issue.

Conclusion: No question of law arose on this issue.

Final Conclusion: All the reference applications were rejected, as the matters raised were either concluded against the assessee or did not disclose any referable question of law.

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