( 1 ) THIS is a reference made under section 256 (1) of the Income-tax Act by the Income-tax Appellate Tribunal, vide its reference order dated 15/06/1987, passed in R. A. No. 162/hyd of 1986. This reference was made on the request of the Revenue. The question referred is as under :"whether, on the facts and in the circumstances of the case and in law, the Appellate Tribunal was correct in holding that the assessee firm was entitled to registration ?"

( 2 ) THE undisputed facts are that the assessee, Oriental T. Maritimes, Visakhapatnam, filed an application under section 185 (1) (b) of the Income-tax Act for registration. The assessee-firm is constituted by five adult partners and three miners. Of the three miners, two were clearly admitted only to the benefits of the partnership. In respect of another minor by name Padmapriya, the deed made no distinction between her and other adult partners and as per the partnership deed she had an interest of 20 per cent. in the profit and loss of the firm. In view of this fact, the Income-tax Officer refused the registration of the firm by holding that the partnership deed was not valid and consequently registration would not