Home Case Index All Cases Income Tax Income Tax + SC Income Tax - 1964 (11) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
1964 (11) TMI 10 - SC - Income TaxWhether the Income-tax Officer can refuse to register a genuine partnership entered into between more than two persons on the ground that one of them is only a benamidar for another? Held that:- When a firm makes an application under section 26A of the Act for registration, the Income-tax Officer can reject the same if he comes to the conclusion that the partnership is not genuine or the instrument of partnership does not specify correctly the individual shares of the partners. But once he comes to the conclusion that the partnership is genuine and a valid one, he cannot refuse registration on the ground that one of the partners is a benamidar of another. If the partnership is genuine and legal, the share given to the benamidar will be the correct specification of his individual share in the partnership. The beneficial interest in the income pertaining to the share of the said benamidar may have relevance to the matter of assessment, but none in regard to the question of registration. In the result, for the aforesaid reasons, we hold that the answer given by the High Court is correct. Appeal dismissed.
|