Partnership genuineness for registration upheld where lack of capital contribution and minor statement discrepancies were not decisive.

A partnership firm's genuineness for registration was assessed with reference to the absence of capital contribution by one partner and minor inconsistencies in his sworn statement. Absence of capital contribution was treated as insufficient, by itself, to invalidate partnership status in law, and the discrepancies were considered too trifling to undermine the firm's existence. On an overall appraisal of the facts, the firm was found genuine and entitled to registration.

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Issues: Whether the partnership firm was genuine and entitled to registration for the assessment year 1976-77.

Analysis: The refusal of registration was based on the absence of capital contribution by one partner and on minor inconsistencies in his sworn statement regarding profit credited and estimated firm income. Such absence of capital contribution does not, by itself, invalidate partnership status in law. The discrepancies in the statement were considered too trifling to cast doubt on the existence or genuineness of the firm. On an overall appraisal of the facts, the firm was found to be genuine.

Conclusion: The firm was held to be genuine and entitled to registration; the assessee succeeded.

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