2003 (10) TMI 45 - HC - Income Tax

Petitioner claiming himself as a partner of Rajendra Silks, a partnership firm registered before the Registrar of Firms, Erode, sought for the certified copies of the profit and loss account of the said firm, filed by the managing partner before the respondent income-tax authorities - when the petitioner himself is competent to sign and verify the returns of the firm, in his capacity as an existing partner of the firm, he is entitled to a copy of the firm, in which case, the question of refusing to furnish copies of the firm on an alleged ground, viz., want of public interest, is no more available for the respondent, as section 138 of the Act itself is not attracted in such cases.

Summary

Issues:
- Request for certified copies of profit and loss account of a partnership firm for specific assessment years.
- Dispute over entitlement to the certified copies under section 138 of the Income-tax Act.
- Interpretation of relevant provisions regarding partner's right to obtain financial documents of the firm.

Analysis:

The petitioner, claiming to be a partner of a registered partnership firm, sought certified copies of the profit and loss account filed by the managing partner with income-tax authorities for three assessment years. The respondents refused, citing the petitioner's status and the requirement of Form No. 46 for such requests. The respondents argued that the petitioner was not entitled to the documents under section 138 of the Income-tax Act, which restricts disclosure of information unless in the public interest.

The petitioner contended his partnership status and willingness to provide necessary certificates to prove his association with the firm. The court examined section 138 of the Act, emphasizing the provision's applicability when an individual applies for information related to an assessee. However, the court noted that the provision did not apply in this case as the petitioner remained a partner of the firm. Reference was made to section 140(cc), highlighting that any partner, not being a minor, could sign and verify returns of the firm in the absence of the managing partner.

The court concluded that when a partner, as in this case, applies for certified copies of financial documents, it is deemed on behalf of the firm itself. Therefore, the respondents could not deny the request based on section 138, which aims to protect the confidentiality of an assessee's tax information. The petitioner, being competent to sign and verify the firm's returns, was entitled to the documents requested. The court directed the petitioner to obtain a valid certificate from the Registrar of Firms confirming his partnership and apply for the certified copies in the prescribed form, with authorities required to furnish the documents within thirty days of the application.

In light of the above analysis, the court granted the writ petitions, allowing the petitioner to obtain the certified copies of the profit and loss account and the assessment order for the specified assessment years. The court emphasized the petitioner's right as a partner to access such financial information and dismissed the respondents' objections under section 138 of the Income-tax Act.