1938 (4) TMI 2

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..... each of two employees, out of the capital of his business, and that these sums had been re-invested by these four persons in the business, which had thereby become a partnership of five persons. He produced a deed of partnership dated the 29th April 1936, which was not registered under the provisions of the Registration Act, and a certificate of registration of this partnership under Section 59 of the Partnership Act, and pointed to entries in the books of account which purported to show that the capital of the new partnership was divided into five shares-one and a half lakhs for himself, ₹ 75,000 for each of his two sons, and ₹ 5,000 for each of the two employees. The Income tax Officer held some sort of an enquiry and came to .....

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..... res of the partners. There were also produced the book entries in the books of account purporting to set out the shares in the capital of each of the Partners, and the registration certificate of the firm under the Partnership Act. No other facts were alleged to prove, as Sir George Rankin, C.J., put it in Messrs. Bisseswarlal Brijlal v. Commissioner of Income tax, Bengal, (4 I.T.C. 365) the reality of the instrument produced , but Mr. Paget for the assessee now says that other evidence was available and would have been produced if opportunity had been given. The assessee asked the Commissioner of Income tax to refer six questions to this Court. It is unnecessary to set out these questions in full, and it is sufficient to say that in es .....

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..... orted to transfer this capital from one person, Haji Abba Dada to five persons, Haji Abba Dada, his two sons, and his two employees. As it has not been registered under the Registration Act, it was clearly ineffectual to do anything of the kind. Therefore four of this alleged partners have not acquired any share in the capital of this business. Mr. Paget has urged that it is unnecessary to the constitution of a partnership that all the partners should hold a share in the capital of the firm; that is undoubtedly so, but in order that a firm may be registered under Section 26A of the Income tax Act the instrument of partnership must specify the individual shares of the partners, and the instrument in this case specifies that each partner hold .....

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