TMI Blog1948 (12) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer under Rule 6 read with Section 26A of the Income-tax Act for a renewal of registration of the firm. For the next preceding year the appellant's firm was registered. This firm consisted of four partners. The application for registration was filed on the 30th June, 1944. Before the filing of the application one of the partners, i.e., Raghunath, died on 27th February, 1944. According to the terms of the partnership agreement in the case of death of a partner his heirs who are legal representatives would be entitled to join the partnership and the partnership would be carried on without dissolution. The application before the Income-tax Officer for renewal of registration was signed by Kishorilal, son of Raghunath. No alterations w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... very partnership firm is required to renew its registration for every year of assessment. In the present case, the application for registration, or to speak more properly, for renewal of registration, was filed on 30th June, 1944. One of the partners (Raghunath) died on 27th February, 1944. According to the terms of the partnership agreement (7th para.) it was agreed between the founders of the firm that the partnership business would not stand dissolved but shall continue to be carried on by the surviving partners with survivors or heirs or executors or administrators of the deceased partner as the case may be. The application for renewal of registration was signed by Kishorilal, son of Raghunath. It is neither stated nor urged by the Depa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tificate of registration has been granted under Rule 4 may apply to the Income-tax Officer to have the certificate of registration renewed for a subsequent year. Such application shall be signed personally by all the partners (not being minors) of the firm, or where the application is made after dissolution of the firm, by all persons (not being minors) who were partners in the firm immediately before dissolution and by the legal representative of any such person who is deceased, and accompanied by a certificate in the form set out below. The form, which is also printed in Sampath Iyengar's Indian Income-tax Act, 3rd Edn., App. VII, Page LXXI, contains a note which is identical as the relevant portion of the Rule 6. The Note: This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should apply to the case of a dissolved firm and not to a firm not dissolved. It may be that ordinarily on the death of any of the partners, the firm gets dissolved automatically but it does not so dissolve where the deceased partner's heir automatically, by virtue of the terms of the deed, become a partner without any fresh agreement. There can be, therefore, no reason why he should not sign in the place of the deceased partner whose status devolves upon him. In consideration of what I have said above, I would answer the question in the negative holding that in the facts and circumstances of the case, the application for renewal of the registration was not defective and should not have been rejected. The application is allowed wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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