THE COMMISSIONER OF INCOME TAX,ANDHRA PRADESH. vs M/S. B. POSETTY & CO.

The Supreme Court addressed the issue of whether a sub-partnership is entitled to registration under the Income Tax Act, 1961 for the assessment year 1966-67, in light of Section 185 of the Act and Section 14 of the Andhra Pradesh (Telangana Area) Abkari Act. The Court upheld the High Court's decision affirming the validity of the sub-partnership, stating that it does not contravene the Abkari Act, and thus is entitled to registration. The appeal by the Revenue was dismissed, confirming the lower courts' rulings in favor of the assessee.