COMMISSIONER OF INCOME-TAX, ANDHRA PRADESH,HYDERABAD vs JAYALAKSHMI RICE AND OIL MILLS CONTRACTOR CO.

The Supreme Court held that the registration of a firm under Section 26A of the Income-tax Act, 1922, is effective only when necessary entries are made in the register of firms as per Section 59 of the Indian Partnership Act, 1932. The Court clarified that while Section 58 suggests that an application may suffice for registration, it must be read in conjunction with Section 59 and Section 69, which delineate the timing of registration. The High Court's view that registration occurs upon application was deemed incorrect, and the appeal by the Revenue was upheld, affirming the refusal to register the firm due to late application.