Judgment

SHAH J.: The appellants who are a firm carrying on business in cloth at Secunderabad applied on June 30, 1955, for registration under S. 26-A of the Indian Income-tax Act, 1922, for the assessment year 1956-57. The following persons were, it was recited in the application, partners, having share in the profits and losses in proportions specified against their names:-

1. M/s. Kylasa Sarabhaiah a firm consisting of the following partners:

(a) Kylasa Veeresalingam

(b) Kylasa Nagendrarao

Rs. As. Ps.

(c) Kylasa Madhusudhanarao 0-6-9

2. Mahendrakar Narayanarao .. 0-3-3

3. Nune Vittayya .. 0-2-6

4. Pottupalli Chaudrayya .. 0-2-6

5. Pande Ramayya .. 0-1-0

For facility of reference we will call No. 1 "the yarn shop."

The Income-tax Officer rejected the application, and his order was confirmed in appeal by the Appellate Assistant Commissioner and by the Income-tax Appellate Tribunal. The Tribunal held that because in the deed of partnership benefits to which certain minors were admitted and particulars "about the distribution of profits or losses in the manner in which the firm wanted the same to be distributed" were not specified, and because by the deed of partnership the Yarn Shop w