PAREKH WADILAL JIVANBHAI vs COMMISSIONER OF INCOME-TAX, M. P. NAGPURAND BHANDARA, NAGP

The Supreme Court held that the partnership firm was entitled to registration under Section 26A of the Income-tax Act, 1922 for the assessment year 1953-54, despite the Income-tax Officer's refusal based on the absence of a specific clause in the partnership deed detailing individual shares. The Court reasoned that the partnership deed, when read as a whole and in light of Section 13 of the Partnership Act, 1932, indicated that each partner had an equal one-third share, thus satisfying the requirement for specification of individual shares. The decision in Kylasa Sarabhalah v. Commissioner of Income-tax was followed, affirming the lower courts' decisions in favor of the firm.