Judgement

SIKRI, J.: These two appeals pursuant to a certificate granted by the High Court of Mysore under S. 66A (2) of the Income-tax Act, 1922, are directed against its judgment answering the question referred to it in favour of the respondent-assessee. The question referred to is:

"Whether the assessee, Mohandas Sadhuram, can be granted registration under S. 26-A of the Indian Income-tax Act on the basis of the partnership deed made on 1-4-1952 for the assessment year 1953-54 and on the basis of the said deed read with the supplementary deed on 1-4-1953 for the assessment year 1954-55."

2. The respondent M/s. Shah Mohandas Sadhuram, hereinafter referred to as the assessee is a firm. The assessee claimed registration under S. 26-A of the Indian Income-tax Act on the strength of a Partnership Deed executed on April 1, 1952. As the answer to the question in part turns on the construction of the deed, the relevant clauses may be set out here. The partnership deed first describes the parties and then recites:

"Whereof the above four members were till this day members of a Joint Family, whereof yesterday that is on 31-3-1962 the said four members have become divided not only in interest