KAPUR, J.

1. This is a reference made by the Appellate Income-tax Tribunal stating the following question for determination of this Court :-

"Whether there could in law be a partnership between a partner in a head-firm and another individual in respect of the partners share in the head-firm so as to entitle the partners in the sub-firm to apply for registration thereof under section 26 A, Income-tax Act, 1922? "

2. Ram Pershad a wholesale dealer was a partner in the Wholesale Cloth Association, Ludhiana, in his individual capacity. His brother in law, Gopal Das, was in charge of his affairs in the Association and was the employee of the Association on a monthly salary of Rs. 200 On the 1st April, 1947 a deed of partnership was drawn up by which Gopal Das became a partner in the share of Ram Pershad in the Association and this firm was called "Laxmi TRading Company". There was no change in the constitution of the Wholesale Cloth Association as a result of the introduction of Gopal Das. The Laxmi Trading Company applied for the assessment year 1948-49 for registration under Section 26A of the Income-tax Act. The registration was refused by the Income-tax authorities but on ap