1971 (1) TMI 4 - SC - Income Tax

Possession of licence in FormFL II does not preclude the holder from entering into a partnership it is only provided that the licence should not be sub-let or transferred. Since there was no prohibition in the licence against the holder entering into a partnership the partnership was legal

Summary

Partnership firm engaged in liquor business entitled to registration under section 26A of the Indian Income-tax Act, 1922. Licence did not prohibit partnership. High Court decision overturned. Commissioner to pay costs.