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TMI Blog1975 (8) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... The Income-tax Officer granted the registration under section 185(1)(a) of the Act and completed the assessment in the status of a registered firm. In the course of the assessment proceedings the Income-tax Officer discovered a cash credit in the name of Jawar Singh. During the course of the assessment proceedings the assessee conceded that the deposit of Rs. 3,100 did not represent a genuine loan from Jawar Singh but actually it was the firm's income credited in a fictitious account. An offer was made that the amount in question may be included in the total income of the firm and tax may be levied accordingly. Subsequently, during the course of assessment proceedings for the assessment year 1967-68, the Income-tax Officer found that a sum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lays down the procedure for the registration of a firm. Rule 22(1) provides that an application shall be made in Form No. 11. Clause (3) of Form No. 11 requires a certificate from the partners to the effect that the profit or loss of the previous year were/will be divided or credited as shown in the Schedule and that the information given above in the Schedule is correct. Thus, it is clear that in order that a firm may be able to obtain registration it must produce a partnership deed specifying therein the individual shares and must apply in Form No. 11 containing the certificate that the profits of the previous year will be or have been divided according to the shares specified in the partnership deed. If this certificate turns out to be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case, a firm applied for renewal of registration for the assessment year 1948-49 under section 26A of the Indian Income-tax Act, 1922. The application was signed by all the partners and in paragragh 3 thereof they appended a certificate to the effect that "the profits of the previous year were divided or credited as shown below". The Appellate Tribunal found that the firm had earned profits in the black market and though it had distributed its book profits among the partners according to the instrument of partnership it had not distributed the profits earned by it in the black market according to the instrument of partnership. The Supreme Court held that the application for renewal of registration made by the assessee-firm did not comply wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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