COMMISSIONER OF INCOME-TAX, AHMEDABAD vs A. ABDUL RAHIM & CO., BARODA

The Supreme Court ruled that under Section 26A of the Income Tax Act, 1922, a partnership cannot be denied registration solely because one partner is a benamidar. The Court held that if the partnership is deemed genuine and valid, the presence of a benamidar does not invalidate the partnership agreement. The beneficial interest of the benamidar is relevant for assessment but not for registration purposes. The appeal was dismissed, affirming the lower courts' decisions that the partnership was valid despite the benamidar's involvement.