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- Registration of partnership firm for assessment years 1953-54 and 1954-55 Analysis: The judgment revolves around the registration of a partnership firm for the assessment years 1953-54 and 1954-55. The assessee applied for registration of the firm, but the Income-tax Officer and the Appellate Assistant Commissioner initially refused registration, citing doubts about the firm's genuineness. However, the Tribunal overturned this decision, stating that there was no material to question the firm's genuineness, thus allowing the registration for both assessment years. Regarding the specific issue of registration for the assessment year 1953-54, the Tribunal referred a question of law to the High Court. The High Court, considering a recent Supreme Court decision, highlighted that the instrument of partnership must be in existence during the accounting year corresponding to the assessment year for registration under section 26A of the Income-tax Act. As the instrument in question was dated after the relevant accounting period, the High Court concluded that registration could not be allowed for the assessment year 1953-54. The judgment also addressed the argument raised by the assessee's counsel, contending that the question referred to the High Court did not arise from the Tribunal's order. The High Court rejected this argument, emphasizing that a question of law arising from the facts and material on record, even if not raised before the Tribunal, is still considered to arise from the Tribunal's order. Furthermore, the High Court discussed the technicality of denying registration based solely on the timing of the partnership instrument's execution. While acknowledging the genuineness of the partnership firm, the High Court noted the potential unfairness of refusing registration on technical grounds. Despite recognizing the hardship, the High Court emphasized the need to decide based on legal provisions, ultimately ruling that the firm was not entitled to registration for the assessment year 1953-54. However, the judgment highlighted that the income-tax authorities could still permit registration following instructions issued by the Board of Revenue, provided the genuineness of the firm was established.
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