1. The assessee in this case, M/s. Mushtaque and Company. Davangere, had been refused registration under section 185(1)(b) of the Income Tax Act, 1961, on the ground that the element of agency which is an essential ingredient to constitute a valid partnership was absent in this case. The assessment year involved is 1962-62. The corresponding accounting period was the year ended March 31, 1962. The instrument of partnership produced before the authorities was dated March 30, 1962, and the partnership was deemed to have come into operation with effect from April 1, 1961. The Constitution of the partnership in terms of the aforesaid deed was as under :

1. Sri C. R. Sayyad Hafeez Saheb,

managing partner 1/2 share.

2. Sri Abdul Warris Saheb, 1/6th share from 1-4-61 to

10-6-61;

1/4 share from 11-6-61 to

31-1-62;

1/6th share from 1-2-62.

3. Sri Sayyad Abdulla Saheb, 1/6th share from 1-4-61 to

10-6-61;

1/4th share from 11-6-61 to

31-1-62;

1/6th share from 1-2-62.

4. Smt. Fatimbhai (died on 10-6-61) From 1-4-61 to 10-6