NARASIMHAM, C. J.

( 1 ) THIS is a reference under section 66 (1) of the Indian Income-tax Act, 1922 made by the Income-tax Appellate Tribunal referring the following question for the opinion of this Court :

"whether on the facts and circumstances of the case the Income Tax officer was justified in refusing registration of the alleged firm under section 26-A or the Income Tax Act. "

( 2 ) ONE Udayanath Mohapatra held a license for excise shop in ganja and opium in his own name, for the previous year ending 31-3-62 for which the assessment year would be 1952-53. Finding difficulty in financing the said excise shop individually, he entered into partnership with five other persons and a deed of partnership was executed on 30-3-1950. In that deed the interest of each partner in the profits and losses was specified. The partnership firm was described as mohapatra Bhandar and that firm applied for registration under Section 26-A of the Income-tax Act for the year in question. The income-tax authorities refused registration of the firm on the ground that the transfer of excise business by udayanath to the firm was prohibited, by the Excise Laws of Orissa and consequently the object of the