https://www.taxtmi.com/caselaws?id=5485 SC held that a partnership formed in contravention of statutory licence conditions under the Excise Rules is void and unlawful under s. 23 of the Contract Act, and therefore not eligible for registration under s. 185 of the Income-tax Act. The genuineness of such a partnership is irrelevant where the very constitution is prohibited by law. The absence of action by the Collector to cancel the excise licence does not validate the prohibited partnership for tax purposes. Registration, being a fiscal benefit, cannot be granted to an illegal entity; it may only be taxed as an unregistered firm or AOP. Appeals were allowed in favour of Revenue and against the assessee. en-us Thu, 16 Nov 1995 00:00:00 +0530 Mon, 15 Dec 2025 14:16:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5485 SC held that a partnership formed in contravention of statutory licence conditions under the Excise Rules is void and unlawful under s. 23 of the Contract Act, and therefore not eligible for registration under s. 185 of the Income-tax Act. The genuineness of such a partnership is irrelevant where the very constitution is prohibited by law. The absence of action by the Collector to cancel the excise licence does not validate the prohibited partnership for tax purposes. Registration, being a fiscal benefit, cannot be granted to an illegal entity; it may only be taxed as an unregistered firm or AOP. Appeals were allowed in favour of Revenue and against the assessee. Case-Laws Income Tax Thu, 16 Nov 1995 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5485