TMI Blog2000 (3) TMI 181X X X X Extracts X X X X X X X X Extracts X X X X ..... its partnership firm in Form No. 11 along with the copy of partnership deed on 23rd March, 1989. Subsequently, the return of income was also filed on 2-11-1989. While framing the assessment under section 143(3) of the Act, the Assessing Officer examined the genuineness of the partnership firm and after having not satisfied with its genuineness, the Assessing Officer refused to grant registration. The refusal was challenged before the CIT(A) but the CIT(A) decided the appeal ex parte and confirmed the refusal of registration. 5. Now, the learned counsel for the assessee has raised a legal objection to the refusal of registration that the grant of registration under section 185 is an independent proceeding and if no action is taken on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee the Assessing Officer refused registration to the firm and framed the regular assessment. As such the refusal of grant of Registration is not proper in view of above provisions. 6. The learned Departmental Representative, on the other hand, has submitted that during the course of assessment the Assessing Officer asked the assessee to produce the partners so that the genuineness of the firm can be examined but the Assessee did not produce the partners despite various opportunities afforded to him. On legal issue the learned DR invited our attention to the proviso to sub-section (6) of section 185 of the Act and contended that this proviso has lifted the bar of limitation for grant of registration to the assessee. According to the provis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... independent proceeding and it should not be clubbed with the regular assessment. For granting registration a specific time-limit is provided under subsection (6) of section 185, according to which where a firm has made an application for registration in relation to an assessment year and has furnished the return for that assessment year, such firm shall be deemed to have been registered under this section on the expiry of the period for serving notice, as specified in the proviso to sub-section (2) of section 143 in respect of such return. It means, as soon as the assessee files the return after its application for registration, the limitation for taking a decision on its application for registration starts and the Assessing Officer is re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e can be drawn that the legislature had laid down separate and independent procedure for grant of registration to the firm. on receipt of the application for registration, the Assessing Officer is required to pass an order in writing registering the firm if he is satisfied with the existence of a genuine firm with its constitution and if he is not, he may pass an order refusing to register the firm. 'Whenever the Assessing Officer feels that the application for registration is not in order, he may intimate the defects to the firm and provide an opportunity to rectify the defect. If the defects are rectified and the Assessing Officer is satisfied with the genuineness of the firm, he may grant the registration otherwise not. While giving libe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the registration to the firm was refused by the Assessing Officer. In these circumstances, as per sub-section (6) the firm was deemed to have been registered under section 185 of the Act. Admittedly no independent proceedings under section 185 were initiated by the Assessing Officer and he simply made a reference with regard to the registration of the firm and asked the assessee to produce the partners for the first time through its notice dated 10-5-1991 which was sent during the course of regular assessment for obtaining certain other information for framing the assessment. 10. Keeping in view the totality of the facts and circumstances of the case in the light of the relevant provisions of law, we are of the considered opinion that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
