1. The following questions of law were referred at the instance of the Revenue:

(1) Whether on the facts and in the circumstances of the case and where a partner obtains a licence in favour of a firm in which he is a partner and carries on the business of Abkari contracts, the Tribunal is right in law in holding

(i) 'it cannot be said that the concerned partner has transferred the licence or the privilege to and in favour of the partnership firm of which he is a partner'?

(ii) 'such transfer, if any, is not prohibited under the Abkari Act'?

(2) Whether, on the facts and in the circumstances of the case, the assessee is entitled to be treated as a registered firm under the Income Tax Act?

2. The respondent assessee is a partnership firm consisting of three partners running a hotel and a bar". The licence for running the bar was granted to one of the partners, Shri K. J. Joseph. The said licence was utilised For running the bar. The firm is a registered firm with the Income Tax Department. But their continuance of registration for the assessment years 1983-84, 1986-87 and 1990-91 was refused by the assessing officer on the ground that the bar licence was in the name of one of the