1966 (7) TMI 10

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....llate Tribunal was right in law in holding that the firm was not entitled to grant of registration for the assessment year 1960-61 and renewal of registration for the assessment year 1961-62 under section 26A. of the Income-tax Act, 1922 ? " has been referred to us by the Income-tax Appellate Tribunal, Madras Bench. The finding entered by the Income-tax Appellate Tribunal on the basis of whi....

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....e Income-tax Rules, 1922, clearly indicates that before registration can be granted there should have been a firm proved to be in existence. Counsel for the assessee, however, has tried to equate this finding to one where it has been held that the daughter-in-law of the assessee, Smt. Elizabeth Joseph, is a benamidar for the assessee, one Mr. Ouseph. On that basis it is urged by him that there ....

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....rified that that is not their final opinion. The passage is in the decision in Commissioner of Income-tax v. Abdul Rahim and Co., and runs thus : " It is true that different considerations may arise, if the partnership is only between two persons of whom one is a benamidar of the other. In that event the partnership may be bad not because the benamidar has no power to enter into the partnership....