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TMI Blog1952 (3) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... out of the refusal of the Income-tax authorities to register a partnership deed under Section 26A of the Income-tax Act. It is open to the authorities to refuse to register a partnership deed, if there is no partnership in law and even if there is a partnership in law if the partnership is not a genuine partnership. Sir Jamshedji has emphasized the fact that it is open to persons to enter into a l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s must agree to share the profits of the business and the business must be carried on by all or any of them for all of them. Therefore, not only must there be a sharing of profits but there must be also the principle of agency. This particular document seems to offend against both the principles. It is unnecessary to go into the details, but taking the two outstanding points it is clear that whate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e where the partner so excluded would not be a partner at all. The other outstanding feature of this case is that even with regard to the sharing of profits it is left to the father to determine what quantum of any profits. should be distributed and it is also left to him after such distribution what should be done with the remaining profits. Therefore, under this document there is not even sharin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lthough four questions have been framed by the Tribunal as directed by us, on a consideration of the matter and on a consideration of the various provisions of the partnership deed, it is clear that really only one question arises, viz. :- "Whether on a true construction of the various provisions of the partnership deed a partnership in law has been formed between Mahomed Umar and his two s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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