( 1 ) ON being moved by the assessee under Section 256 (1) of the Income-tax Act, 1961 (in short the Act), the Income-tax Appellate Tribunal Delhi Bench-C (in short, the Tribunal) has referred the following question for opinion of this court.

1. Whether, on the facts, and in the circumstances of the case, the Tribunal was correct in holding that on a true interpretation of clause 8 of the partnership deed dated 19. 7. 1971 and clause 9 of the partnership deed dated 26. 5. 1972 there was no partnership in existence and what was evident was only an employer-employee relationship in the garb of partnership ? Whether, on the facts and in the circumstances of the case, the Tribunal was right in upholding the action of the Revenue in refusing registration for the assessment years 1973-74 and 1974-75 ?

( 2 ) FACTUAL position as indicated in the statement of case is essentially as follows:- One Brij Lal was carrying on business Ln the name and style of M/s K. B and Co on proprietorship basis upto 30. 6. 1971. With effect from 1. 7. 71, a partnership was con- stituted on the basis of a deed of partnership, which was drawn up on 19. 7. 1971. Shares in profit and loss were as ind