JUDGMENT
1. The Income-tax Appellate Tribunal has referred the following question under Section 256(1) of the Income-tax Act, 1961.
"Whether, on the facts and in the circumstances of the case, the assessee was entitled to grant of registration for the assessment year 1973-74 ?"
2. An application for fresh registration in Form No. 11-A was filed by the firm on May 18, 1972, for the assessment year 1973-74 along with a deed of partnership. The partnership deed shows that a minor, Sri Sanjai Kumar, was admitted to the benefits of partnership. On the ground that no one consented for such admission on behalf of the minor, the Income-tax Officer refused the registration, which was confirmed in appeal. On further appeal, however, the Tribunal agreed with the assessee and directed the registration to be granted. The Tribunal referred to Clause 7 of the partnership deed which provided that the father and guardian of the minor shall not interfere with the conduct of the business of the firm. The Tribunal also relied upon the affidavit filed by the minor's father and guardian that he had given his consent for such admission. On this basis, the Tribunal was of the opinion that the guardian's consent was there for the admission of the minor.
3. Another fact was incidentally referred to by the Income-tax Officer, viz., transfer of a sum of Rs. 29,000 by the grandfather of the said minor to the minor by way of a book entry when the cash amount available in the books of the firm was very small. But it does not appear that this line was pursued further by the Income-tax Officer. The first appellate authority has not even referred to this aspect. There is also no finding by the Income-tax Officer that the firm is not genuine.
4. In the above circumstances, the question referred is answered in the affirmative, that is, in favour of assessee and against the Revenue. No costs.