TMI Blog1975 (7) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... nor, admitted to the benefits of the partnership. The firm was registered under section 184 for the assessment year 1963-64 and the registration was continued for 1964-65. A fresh deed of partnership came to be executed on September 3, 1964, during the previous year ended March 31, 1965, relevant to the assessment year 1965-66. Under this deed, Halima Begum was described as aged 19 years and was taken as a full-fledged partner. It was stated in this deed that she attained the age of majority on the expiry of March 31, 1964, and has been equated as a full-fledged partner from April 1, 1964. The firm also filed an application on January 20, 1965, in Form 11 for fresh registration for the assessment year 1965-66 under section 184(1). The retur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the declaration in Form 12 filed on March 2, 1966, and held that the declaration was not filed along with the return date July 29, 1965, and that, therefore, there was no continuation of the registration under section 184(7). He, accordingly, assessed the firm as an unregistered partnership. On a further appeal, the Appellate Assistant Commissioner took the view that the benefit of registration was rightly refused by the Income-tax Officer. The contention of the assessee before the Tribunal was that since the assessee had filed a declaration in Form 12 along with the return submitted on March 2, 1966, it shall be deemed to be sufficient compliance with the proviso to section 184(7) and that it was entitled to file a revised return as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al registration shall have effect in the subsequent assessment year. He also contended that, in any case, the filing of the declaration at any time before the actual assessment, would be enough and the provision requiring it to be filed along with the return of income, could not be held as mandatory. Section 184(1) enables a firm, constituted under an instrument of partnership, to file an application for registration. Clauses (3), (4) and (5) set out the manner of filing the application and the person to whom it has to be filed. On receipt of the application, the Income-tax Officer, under section 185, was required to enquire into the genuineness of the firm and its constitution and if he is satisfied that there is or was, during the prev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntain any request for renewal of the registration or continuation of the registration. Clause (4) of section 185 also only requires the Income-tax Officer, where a declaration under section 184(7) is furnished, to record a certificate on the instrument of partnership to the effect that the registration is continued for the relevant subsequent assessment year. These provisions show that there was no need for filing an application for continuation ,or renewal of the registration and the Income-tax Officer makes no order of continuation or renewal. If the proviso to section 184(7) is satisfied by law the registration originally granted was given effect to for the subsequent assessment year, as well. The intention of Parliament was to give effe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revious year and any delay in filing that application, even if it was before the assessment, could not be treated as valid application. Normally, a firm is to be assessed on the basis of the total income of the firm, as contained in sections 143 and 144. Section 184 enabled a firm to get itself registered, and under section 182, in the case of a registered firm, it will have to be assessed in the manner provided in that section notwithstanding anything contained in sections 143 and 144. The assessment of a firm as a registered one is a beneficial provision and if a firm desires to have that benefit, it will have to satisfy the conditions for registration. The registration has a bearing on the tax effect and, therefore, any condition relatin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... But the omission or wrong statement, referred to in that provision, in our opinion, must have a bearing on the assessment of the firm itself and it is not that every incorrect statement that would enable the assessee to file a revised return. In this case, we could not treat the return filed on March 2, 1966, as a revised return which had to be considered by the Income-tax Officer. It is merely a duplication of the original return and not a revised return. The income returned is the same, the names of the partners are the same and the shares of partners are also the same. Further, though the description of Halima Begum as a minor may be considered as a correct statement, a minor admitted to the benefits of partnership is considered as a par ..... X X X X Extracts X X X X X X X X Extracts X X X X
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