Raghavan, J.

1. A short yet important question has been referred to us by the Income Tax Appellate Tribunal at the instance of the Revenue. We may at the outset state a few facts even before we extract the question.

2. The assessee is a firm of lawyers, Joseph & George; and the partners have been carrying on their profession as an unregistered firm. On 10th April 1964, they drew up a document of partnership embodying the terms and the constitution of the firm, and on the same day, they applied for registration of the firm for the assessment year 1964-65, the accounting year being from 1st April 1963 to 31st March 1964. Since the application for registration was not filed before the close of the previous year, an application for condoning delay was filed, the reason for the delay being that the senior partner of the firm was ill. The Income Tax Officer was satisfied about the reason; and he consequently excused the delay. But be did not register the firm, as, in his opinion, the document of partnership was not in force during the relevant accounting year. The assessee firm took up the matter in appeal before the Appellate Assistant Commissioner, and he took a different view on