JUDGMENT :

R.N. Misra, J. - At the instance of the assessee, the Income Tax Appellate Tribunal has made this reference and stated a case u/s 256(1) of the Income Tax Act of 1961 (hereafter referred to as "the Act"), and the following question has been asked to be answered by us :

" Whether, on the facts and in the circumstances of the case, the decision of the Appellate Tribunal upholding refusal of the Income Tax Officer to grant registration to the assessee u/s 185(1)(a) of the Act on the ground that no genuine partnership was brought into existence, is justified in law ?"

2. Jammula Venkataswamy and his four sons constituted a Hindu undivided family of which the father was the karta. This Hindu undivided family carried on business in iron and hardware in the name and style of "Jammula Venkataswamy & Sons" at Berhampur in the district of Ganjam. On September 19, 1964, there was a partition of the family assets and the claim made u/s 171 of the Act has been duly accepted by the revenue. Five weeks after this partition, the father and two of the divided sons constituted themselves into a partnership firm as per instrument of partnership, dated the 25th October, 1964. This firm was re