https://www.taxtmi.com/caselaws?id=191124 A partnership deed does not by itself prove a genuine partnership for income-tax purposes; the authorities may examine whether it was meant to regulate real rights and liabilities or was merely a pretence. A finding that the firm was not genuine must rest on relevant material and cannot be based on suspicion, irrelevant circumstances, or an inference no reasonable person could draw. On the facts discussed, the partner's lack of business knowledge was consistent with a dormant role, non-withdrawal of profits did not negate partnership, and the deed's execution circumstances did not support a sham inference. Refusal of registration under section 26A was therefore unjustified. en-us Fri, 30 Apr 1965 00:00:00 +0530 Tue, 21 Mar 2017 17:07:28 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=191124 A partnership deed does not by itself prove a genuine partnership for income-tax purposes; the authorities may examine whether it was meant to regulate real rights and liabilities or was merely a pretence. A finding that the firm was not genuine must rest on relevant material and cannot be based on suspicion, irrelevant circumstances, or an inference no reasonable person could draw. On the facts discussed, the partner's lack of business knowledge was consistent with a dormant role, non-withdrawal of profits did not negate partnership, and the deed's execution circumstances did not support a sham inference. Refusal of registration under section 26A was therefore unjustified. Case-Laws Income Tax Fri, 30 Apr 1965 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=191124