JUDGMENT

1. The following question has been referred to us by the Income Tax Appellate Tribunal, Allahabad Bench, u/s 66(1) of the Indian Income Tax Act for our opinion:

Whether, in the circumstances of the case and on a correct construction of the deed of partnership, dated the 3rd of April, 1944, a genuine partnership can be inferred ?

2. The assessee firm Lalli Ram Sunder Lal was assessed upto the assessment year 1944-45 as a Hindu undivided family firm. On the 3rd of April, 1944, one Ram Charan Sarogia, representing this Hindu undivided family, entered into a deed of partnership with two brothers, Ram Charan Laharia and Grovind Das. The agreement of partnership laid down that Ram Charan Sarogia representing the first party and Ram Charan Laharia and Govind Das constituting the second party would be entitled to profits and would bear the losses in equal shares. An application was presented for registration of this deed of partnership u/s 26A of the Indian Income Tax Act during the assessment year 1945-46. The Income Tax Officer rejected this application and the appeals to the Appellate Assistant Commissioner of Income Tax and to the Income Tax Appellate Tribunal failed. The assesse