1. Miscellaneous Judicial Case No; 327 of 1957 : In this case it appears that one K. C. S. Reddy obtained a dealers licence under the provisions of the Bihar Mica Act in 1948. For the assessment year 1950-51 he filed a return of his income from the business in mica in the status of an individual and the assessment was completed on, that basis. Subsequently the assessee made a claim that the business had been taken over by a firm consisting of himself and four others, namely (1) Adala Ramireddy of Nellore, (2) Bettepati Sub-bareddy of Nellore, (3) Veluru Saraswathama of Indupur, Kovur Taluk, and (4) Kotamreddi Chenchamma of Bodduvaripalem, Kovur Taluk. It was alleged that there was a partnership deed dated 15-8-1950, and registration of the firm was claimed on the basis of this partnership deed under Sec.26A of the Indian Income-tax Act.

The application for registration was rejected by the Income-tax Officer and assessment was made under Sec.23(3) of the Income-tax Act on the basis that the firm was an unregistered firm. The matter, was taken up in appeal, but the Appellate Assistant Commissioner dismissed the appeal, holding that the assessee was carrying on mica dealing bu