1953 (6) TMI 5

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..... UDGMENT KAPUR, J.--This is a reference made by the Appellate Income- tax Tribunal stating the following question for determination of this Court:- "Whether there could in law be a partnership between a partner in a head-firm and another individual in respect of the partner's share in the head-firm so as to entitle the partners in the sub-firm to apply for registration thereof under Sec .....

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..... ome-tax authorities but on appeal to the Appellate Tribunal the firm was directed to be registered under Section 26A and on the application of the Commissioner of Income-tax, the question which I have quoted above has been stated for the opinion of this Court. Counsel for the Commissioner of Income-tax has submitted that such a relationship as is created by the deed of the alleged partnership bet .....

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..... ginal firm. The result of such an agreement is to constitute what is called a sub-partnership, that is to say, it makes the parties to it partners inter se; but it in no way affects the other members of the principal firm." I am, therefore, of the opinion that the Income-tax Appellate Tribunal has rightly directed the registration of the firm under Section 26A and I will answer the question .....

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