Somnath Iyer, J.

1. This is a reference under section 66(1) of the Indian Income-tax Act, 1922, sought by the assessee which is a firm in Hubli. There were four partners in the firm and in the opinion of the Tribunal, the instrument of partnership, on its interpretation, specified only the shares of the partners in the profit and not their shares in the losses. So, it reversed the order made by the Appellate Assistant Commissioner and restored that made by the Income-tax Officer who refused registration under section 26 A of the Act. The two question of law referred to us read :

"(1) Whether for obtaining registration under the provisions of the Income-tax Act, 1922, it is necessary for a firm to specify the shares of the partners in losses also in the instrument of partnership, besides specifying the shares of profits ?

(2) Whether, on a reasonable interpretation of clauses 3 and 7 of the instrument of partnership under which the assessee firm was constituted, could it be said that the shares of the partners in losses have not been specified in the deed disentitling if from getting registration under the Income-tax Act ?"

2. If the first question is answered in favour of the