https://www.taxtmi.com/caselaws?id=38497 A sub-partnership formed by a partner in a licensed liquor business, solely to finance that partner's share and apportion the resulting profits and losses, is not illegal under the Abkari law merely because the main business is liquor trade. The sub-partnership remains an arrangement inter se and does not make the sub-partners partners in the main firm. Its validity and eligibility for registration under the Income-tax Act depend on its genuineness and legal existence, not on later sharing of beneficial income. The prohibition in the Abkari law applies only where the sub-partnership itself carries on liquor business without the necessary licence or permission. On the stated facts, the sub-partnerships were valid and entitled to registration. en-us Fri, 16 Apr 1976 00:00:00 +0530 Tue, 06 Apr 2010 17:10:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38497 A sub-partnership formed by a partner in a licensed liquor business, solely to finance that partner's share and apportion the resulting profits and losses, is not illegal under the Abkari law merely because the main business is liquor trade. The sub-partnership remains an arrangement inter se and does not make the sub-partners partners in the main firm. Its validity and eligibility for registration under the Income-tax Act depend on its genuineness and legal existence, not on later sharing of beneficial income. The prohibition in the Abkari law applies only where the sub-partnership itself carries on liquor business without the necessary licence or permission. On the stated facts, the sub-partnerships were valid and entitled to registration. Case-Laws Income Tax Fri, 16 Apr 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38497