1967 (7) TMI 25

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....rying on business in the name and style of M/s. Ganeshi Lal Lakshmi Narain Lal. The members of the firm were Muneshwar Prasad and Satchidanand, and one Om Kumar, a minor, was admitted to the benefits of partnership. The partnership firm was registered annually under section 26A up to and inclusive of the assessment year 1958-59. For the assessment year 1959-60 an application for renewal of registration signed by Muneshwar Prasad, Satchidanand and Om Kumar was filed before the Income-tax Officer. It appears that Om Kumar had meanwhile attained majority and had, therefore, signed the application for renewal of registration. In the application there was a specific statement to the effect that the annual profits of the firm had been divided bet....

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....of the firm. Now, while that may be so for the purposes of the partnership law, the question is whether it satisfies the requirements of the income-tax law in respect of registration of a partnership firm. Section 26A of the Indian Income-tax Act provides for the registration of a firm constituted under an instrument of partnership specifying the individual shares of the partners. It is true, as pointed out by the Supreme court in R. C. Mitter & Sons v. Commissioner of Income-tax, that the instrument of partnership need not be a document creating the partnership and that it may bean instrument merely giving a legal form to the partnership by reducing the terms and conditions of the partnership to writing. Nevertheless, the instrument must i....