1. In this reference under S.66(1) of the Indian Income - tax Act, 1922, at the instance of the assessee Messrs. Dayahhai and Co. of Barwani, the question posed for our answer is :
"Whether on the facts and in the circumstances of this case, the assessee is entitled to registration under S.26 - A of the Indian Income - tax Act for the assessment year 1956-57 ?"

2. The facts of the case are as follows. One Dayabhai was carrying on under the name and style of "Dayabhai and Co." the business of plying buses and trucks, and exhibition of cinema films. The permits for the running of stage carriages and trucks issued under the Motor Vehicles Act, 1939, were in the name of Dayabhai. In August 1964, Dayabhai admitted his brother Chhotanhai as a partner in this business. A partnership deed was executed between the two brothers on 1st August 1954. Under the agreement the two brothers shared equally the profits and losses of the partnership business which according to the deed consisted mainly of "Bus plying and Cinema exhibition". The partnership business commenced from 1st August 1964. Clause 3 of the agreement between this two brothers stated :
. . Prior to the formation of firm Motor Bus a