JUDGMENT :

Sikri, J.

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

"Whether the assessee, Messrs Shah Jethaji Phulchand, can be granted registration under Section 26-A of the Indian Income Tax Act on the basis of the deed made on November 20, 1950, for Assessment Year 1953-54 and/or 1954-55?"

2. The relevant facts are these: The respondent, M/s Shah Jethaji Phulchand, hereinafter called the assessee, is a firm constituted by partnership deed dated November 20, 1950. The assessee sought registration of the firm under Section 26-A of the Indian Income Tax Act for assessment years 1953-54 and 1954-55. The deed of partnership was entered into between five parties; (1) Nathmul Jethaji, (2) Phulchand, (3) S. Babulal, minor son of Jethaji, (4) Sakalchand Thikmaji, and (5) Jethibai. The relevant clauses of the agreement on which the learned counsel have made comments are these:

"3. Whereas the above 5 parties have agreed to do business of cotton and kapas, purch