P. Govindan Nair, C.J.

1. The Income Tax Appellate Tribunal, Cochin Bench has referred the following question for our decision.

"Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in holding that the assessee is not entitled to registration under S.185 of the Income Tax Act, 1961?"

2. The relevant provisions of the Partnership Deed (Annexure A) are Clause.7 and 15. They read as follows:

"7. The profit of the Partnership business shall be shared and borne by the partners as under. Any loss sustained to partnership business such losses are not binding to the 3rd partner.

Partner No. 1 P. Kunhayin. 40%

Partner No.2 K. Abdurahiman. 35%

Partner No. 3 M. Avaran Koya 25%

..................................

15. In matters wherein no specific mention is made hereunder, the provisions of the Indian Partnership Act 1932 shall prevail with respect to the relationship between the partners and the firm and their (sic) parties".

3. Chap.3 of the Indian Partnership Act, 1932 (for short the Act) deals with "relations of partners to one another" and Chap.4 thereof deals with "relations of partners to third parties". Though the wording in Clause.15 of t