JUDGMENT

PATHAK J. - The Income Tax Appellate Tribunal has referred this case for the opinion of this court on the following question :

"Whether, on the facts and in the circumstances of the case, the Income Tax authorities were justified in refusing registration u/s 26A of the Act ?"

Under a deed of partnership executed on January 10, 1948, a firm was constituted for the purpose of carrying on business in the name and style of M/s. Ganeshi Lal Lakshmi Narain Lal. The members of the firm were Muneshwar Prasad and Satchidanand, an one Om Kumar, a minor, was admitted to the benefits of partnership. The partnership firm was registered annually u/s 26A up to and inclusive of the assessment year 1958-59. For the assessment year 1959-60 an application for renewal of registration signed by Muneshwar Prasad, Satchidanand and Om Kumar was filed before the Income Tax Officer. It appears that Om Kumar had meanwhile attained majority and had, therefore, signed the application for renewal of registration. In the application there was a specific statement to the effect that the annual profits of the firm had been divided between the partners. The Income Tax Officer rejected the application on two g