Section 68 - Substitution of new sections for sections 184, 185 and 186 - Direct Tax Laws (Amendment) Act, 1987

68. Substitution of new sections for sections 184, 185 and 186. For the sub-heading B .- Registration of firms before section 184, and for section 184, 185 and 186 of the Income-tax Act, the following sections shall be substituted, namely :- 184. Assessment as a firm. (1) A firm shall be assessed as a firm for the purposes of this Act, if- (i) the partnership is evidenced by an instrument; and (ii) the individual shares of the partner are specified in that instrument. (2) A certified copy of the instrument of partnership referred to in sub-section (1) shall accompany the return of income of the firm of the previous year for the assessment year in respect of which assessment as a firm is first sought. Explanation.- For the purposes of this sub-section, the copy of the instrument of partnership shall be certified in writing by all the partners (not being minors) or, where the return is made after the dissolution of the firm, by all persons (not being minors) who were partners in the firm immediately before its dissolution and by the legal representative of any such partner who is deceased. (3) The return of income referred to in sub-section (2) shall be signed and verified by all the partners, not being minors. (4) Where a firm is assessed as such for any assessment year, it shall be assessed in the same capacity for every subsequent year if there is no change in the constitution of the firm or the shares of the partners as evidenced by the instrument of partnership on the basis of which the assessment as a firm was first sought. (5) Where any such change had taken place in the previous year, the firm shall furnish a certified copy of the revised instrument of partnership along with the return of income for the assessment year relevant to such previous year and all the provisions of this section shall apply accordingly. (6) Notwithstanding anything contained in the foregoing pro- visions of this section, where, in respect of any assessment year, there is, on the part of a firm any such failure as is mentioned in section 144, the firm shall not be assessed as such for the said assessment year and, thereupon, the firm shall be assessed in the same manner as an association of persons, and all the provisions of this Act shall apply accordingly. 185. Assessment when section 184 not complied with. Where a firm does not comply with the provisions of section 184 for any assessment year, the firm shall be assessed for that assessment year in the same manner as an association of persons, and all the provisions of this Act shall apply accordingly. .