KHANJAN LAL SEWAK RAM vs COMMISSIONER OF INCOME TAX, U.P.

The Supreme Court addressed the issue of tax evasion by a partnership firm under the Income Tax Act, specifically focusing on the registration of the firm for the assessment year 1948-49. The Court held that the firm attempted to evade tax by not recording all profits in their books, which was evident from the statements made by the partners. The Court ruled that the application for registration was invalid due to the non-disclosure of profits, thus affirming the decision of the Allahabad High Court.