MANDYALA GOVINDU & CO. vs COMMISSIONER OF INCOME TAX, ANDHRA PRADESH

The Supreme Court held that under Section 26A of the Income Tax Act, 1922, a partnership deed must specify the shares of partners in both profits and losses for registration. The Court dismissed the appeal, affirming that the Income Tax Officer must ascertain partners' shares in losses before granting registration, regardless of conflicting High Court opinions. The Court clarified that a firm, whether registered or unregistered, is an assessee under the Act, and the right to registration is contingent upon strict compliance with statutory requirements.