1971 (11) TMI 41

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..... business, if one is illegal, it would not make the constitution of the firm illegal - registration cannot be denied - - - - - Dated:- 17-11-1971 - Judge(s) : HARI SWARUP., R. S. PATHAK. JUDGMENT The judgment of the court was delivered by PATHAK J.-At the instance of the assessee the Income-tax Appellate Tribunal, Delhi Bench, has referred the following question of law. for the opinion o .....

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..... as an illegal and invalid firm. Accordingly, he declined to extend the benefit of registration of the firm. The order made by the Income-tax Officer was upheld both by the Appellate Assistant Commissioner and the Income-tax Appellate Tribunal. The assessee then obtained this reference under section 256(1) of the Income-tax Act. From the statement of the case it appears that at its inception .....

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..... ies turned out to be illegal that did not render the constitution of the firm illegal and on that ground the income-tax authorities were not justified in refusing registration or renewal. The Appellate Tribunal relied upon the case of Jer Co. v. Commissioner of Income-tax. That was a case where the entire object of the partnership was held to be illegal. Even if plying of buses by the assessee .....

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