Firm registration turns on genuineness under the partnership deed, not every partner's personal signature.

Registration of a firm under section 26A of the Indian Income-tax Act, 1922 depends on whether a genuine firm exists under an instrument of partnership specifying the partners' shares, not on whether every partner personally signed the deed. A partnership deed is not invalid merely because one partner did not sign it, if the firm otherwise exists in accordance with the instrument. The authorities erred by treating the alleged forgery as automatically negativing genuineness without examining the statutory test. On that basis, refusal of registration was not justified.

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Issues: Whether the registration of the firm was rightly refused on the ground that the partnership deed was not genuine and the statutory conditions for registration were not satisfied.

Analysis: Registration under section 26A of the Indian Income-tax Act, 1922, read with rules 2 to 4 of the Indian Income-tax Rules, 1922, is available to a genuine firm constituted under an instrument of partnership specifying the individual shares of the partners. The enquiry is not confined to whether every partner has signed the deed. The material question is whether a genuine firm existed as shown in the instrument. A partnership deed is not rendered void merely because one partner did not personally sign it, if the firm otherwise existed in accordance with the deed. The authorities had proceeded on the mistaken basis that the alleged forgery by itself negatived the existence of a genuine firm, without examining the real issue required by the statute.

Conclusion: The refusal of registration was not justified on the ground that the firm was not genuine, and the issue was answered in favour of the assessee.

Ratio Decidendi: For registration of a firm under section 26A, the decisive enquiry is whether a genuine firm existed as constituted under the instrument of partnership, not whether every partner personally signed the deed; a deed is not invalid merely because one partner did not sign it, if the firm otherwise answers the statutory description.

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