( 1 ) THIS is a reference under Section 66 (1) of the Income-Tax Act, 1922. The question referred for decision is in the following terms: "whether on the facts and in the circumstances of the case the firm of Ramakrishna Transports, Kalabasthi was entitled to registration under Section 26-A of the Act. "

( 2 ) THE dispute relates to the assessment year 1950-60, the relevant accounting year being the year ending on 31-3-1959

( 3 ) THE assessee is a partnership firm constituted under an instrument of partnership dated 27-3-1955. It carries on business in bus transport. Two of the partners in this firm (1) Sri Venugopala Reddy and (2) Rama-krishna Reddy, holding 3 annas share each are the co-parceners of a Hindu undivided family, the Kartha being Sri A. Balarama Reddy. The only other two partners Sri Venku Reddy and Sri M. Veerabhadravya holding 5 annas share each are strangers The firm was duly registered under Section 26a of the Income-tax Act. The share income of Sri Venugopala Reddy and Ramkrishna Reddy were being offered for assessment as the income of the Hindu undivided family and assessed by the Income Tax Officer accordingly Some years later the assessee came with the contentio

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