The licence companytained numberprohibition against entering into partnership for carrying on the business in foreign liquor by the holder of the licence.
At the instance of the Commissioner, the following question was referred by the Tribunal to the High Court of Allahabad Whether on the facts and in the circumstances of the case the firm was entitled to registration Under Section 26A of the Income tax Act, 1922.
The firm has appealed to this Court with special leave.
The firm appealed against the order to the Income tax Appellate Tribunal.
The partnership was registered Under Section 26A of the Indian Income tax Act 1922 till the assessment year 1957 58 and tax was assessed and levied on the footing that the firm was a registered firm.
On applications for renewal filed by the firm for the assessment years 1958 59 and 1959 60, the Income tax Officer granted registration, but the order was set aside by the Commissioner of Income tax in exercise of his power Under Section 33B of the Indian Income tax Act.
The licence was renewed every year.
C. Shah, C.J. By an agreement dated July 21, 1945, two brothers Dady and Minoo entered into a partnership to carry on the business of wholesale merchants and in foreign liquor in the name and style of Jer and Company at Agra Dady obtained in 1945 a licence from the Excise authorities Under Rule 574 of the U.P. Excise Rules for wholesale vending of foreign liquor.
