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Entitlement to registration for assessment years 1965-66 and 1966-67 under section 27 of the Kerala Agricultural Income-tax Act, 1950. Analysis: The judgment addressed the issue of whether the assessee-firm was entitled to registration for the assessment years 1965-66 and 1966-67 under section 27 of the Act. The firm had initially been constituted under a partnership deed dated October 8, 1959, which was to continue for five years. Subsequently, a fresh deed of partnership was executed on December 22, 1965, after the expiry of the original deed. The firm applied for renewal of registration under section 27 for the years 1965-66 and 1966-67. The Inspecting Assistant Commissioner denied registration, citing the absence of a partnership instrument for the entire year, as the new deed was dated after the expiry of the old one. However, the Appellate Tribunal overturned this decision and granted registration. The court considered the interpretation of section 27, which requires an application for registration to be made on behalf of a firm constituted under a partnership instrument. The Revenue argued that the partnership instrument must be in force for the entire accounting year to qualify for registration, relying on a previous court decision. However, the court referred to another decision that emphasized the need for the partnership to exist for the whole accounting year, rather than the instrument being operative throughout. The court highlighted the importance of the partnership's existence and continuity during the relevant period. The court examined the specific circumstances of the case, where the new partnership deed was executed after the expiry of the old one but stated the continuation of the partnership under the same terms and conditions. The court found that the partnership had been carried on throughout and the new deed related to that period as well as for a further five years. The court rejected the Revenue's argument that the five-year period mentioned in the new deed should start from its execution date, emphasizing that the partnership's existence from the beginning of the accounting year was crucial. The court cited a Madras High Court decision to support the view that subsequent execution of an instrument during the accounting year could still constitute a firm under a deed of partnership for the entire year. Ultimately, the court ruled in favor of the assessee, holding that they were entitled to registration for the assessment years 1965-66 and 1966-67. The court emphasized the importance of the partnership's continuity and the existence of the partnership throughout the relevant accounting years. The judgment concluded by directing the Registrar to send a copy of the judgment to the Kerala Agricultural Income-tax and Sales Tax Appellate Tribunal in Ernakulam.
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