Judgment

GUPTA, J. - This appeal by special leave is directed against an order of the High Court of Andhra Pradesh at Hyderabad answering in the negative and in favour of the revenue the following question referred to it under Sec. 66 (1) of the Indian Income-tax Act, 1922 (hereinafter referred to as the Act).

"Whether the Assessee is entitled to registration under Section 26A of the Income-tax Act, 1922 for the assessment year 1961-62."

2. The assessee is a firm. The instrument of partnership was executed on January 5, 1959 but the application for registration under Sec. 26A remained undisposed of until the assessment for the year 1961-62 was taken up. The instrument shows that three persons, Mandyala Narayana, Mandyala Vehkatramaiah, Mandyala Srinivasulu and a minor, Mandyala Jaganmohan who was admitted to the benefits of the partnership, held the following shares: Narayana 31 per cent, Venkatramaiah 23 per cent,. Srinivasulu 23 per cent, and minor Jaganmohan 23 per cent. Clause 2 of the instrument which sets out the shares of the partners adds that the "profits of the above partnership business shall be divided and enjoyed according to the shares specified above." There is no cla