COMMISSIONER OF INCOME-TAX, MADRAS vs BAGYALAKSHMI & CO., UDAMALPET

The Supreme Court held that under Section 26A of the Indian Income-tax Act, 1922, a partnership deed does not need to reflect the correct shares of partners as per a partition deed to be registerable. The Court emphasized that a partnership contract primarily governs the rights and liabilities of partners, irrespective of their obligations to third parties regarding profit shares. The High Court's decision favoring the assessee was upheld, allowing the registration of the partnership for the assessment years in question.