Shah, CJI.

(1) BY an agreement, dated 21/07/1948, two brothers Dady and Minoo entered into a partnership to carry on the business of wholesale merchants and in foreign liquor in the name and style of "Jer and Company" at Agra. Dady obtained in 1945 a licence from the Excise authorities under Rule 574 of the U. P. Excise Rules for wholesale vending of foreign liquor. The licence was renewed every year. The licence contained no prohibition against entering into partnership for carrying on the business in foreign liquor by the holder of the licence.

(2) THE partnership was registered under S. 26-A of the Indian Income Tax Act, 1922 till the assessment year 1957-58 and tax was assessed and levied on the footing that the firm was a registered firm. On application for renewal filed by the firm for the assessment years 1958-59 and 1959-60 the Income Tax Officer granted registration, but the order was set aside by the Commissioner of Income Tax in exercise of his power under S. 33-B of the Indian Income Tax Act, The firm appealed against the order to the Income Tax Appellate tribunal. The tribunal allowed the appeal holding that there was no sub-letting or tra