Commissioner Of Income-Tax vs Rangila Ram And Ors.

The Supreme Court held that the registration of a partnership dealing in liquor under the Income-tax Act was rightly refused due to the prohibition against unauthorized partnerships under relevant excise laws. Citing Bihari Lal Jaiswal v. C/T [1996] 217 ITR 746, the Court emphasized that only the licensee may conduct the liquor business, and any partnership without express permission is illegal. The appeal was allowed, and the previous order was set aside, affirming the Revenue's position.