TMI Blog1971 (11) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... ee partners, (1), T. Aswarthanarayana, (2) Venkaiah Naidu, and (3) Audinarayana, and registered under the Income-tax Act, was carrying on business from 1953. The instrument of partnership was dated April 1, 1953, and it provided that the partnership was to be for a period of twenty years and in the event of the death of any partner the partnership was not to dissolve but was to continue with the heir of the deceased partner taking his place. The registration of the firm was continued year after year by the income-tax department till the assessment year 1964-65. The accounting year which corresponded to the assessment year 1964-65 was October 29, 1962, to November 15, 1963. Aswarthanarayana, one of the partners, died on October 15, 1963, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration for part of a previous year. At the instance of the Commissioner of Income-tax the following question has been referred to us: " Whether, on the facts and in the circumstances of the case, continuation of registration for a part of relevant 'previous year', namely, from October 29, 1962, to October 15, 1963, for the assessment year 1964-65 was maintainable in terms of the provisions of section 187(1) of the Income-tax Act, 1961 ? " Section 184 deals with application for registration, section 185 with procedure on receipt of application and section 186 with cancellation of registration. Section 184(4) states: " The application shall be made before the end of the previous year for the assessment year in respect of which registrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ranted registration for part of the previous year and refused registration for the other part. It would be most anomalous to do so. It would mean that the firm would be both a registered firm and an unregistered firm for the same assessment year---a two-faced firm. How then is the firm to be assessed ? How is its income to be computed ? How are the losses and incomes to be set off ? Who is to pay the tax and in what proportion ? What is the accounting year of the registered " face " of the firm and that of the unregistered " face " of the firm ? The assessee itself did not divide the previous year into two periods and make up its accounts to show the profits or losses separately for the two periods. The income returned by the firm cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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