1985 (1) TMI 18 - HC - Income Tax

Summary

Issues:
1. Entitlement to registration under section 185
2. Dissolution of the firm due to partner's death and continuation of registration under section 184(7)
3. Requirement of application in Form No. 11A for change in constitution or succession of the firm
4. Error in holding only one assessment for the entire previous year

Entitlement to registration under section 185:
The Income-tax Appellate Tribunal referred questions regarding the correctness of their findings on the firm's entitlement to registration under section 185. The Tribunal's decision was challenged, and the impact of an amendment to section 187 of the Income-tax Act, made retrospective from April 1, 1975, was brought to light. The Tribunal was directed to consider the effect of this amendment and provide an additional statement of the case for further evaluation.

Dissolution of the firm and continuation of registration under section 184(7):
The issue arose due to the death of a partner, leading to the dissolution of the firm. The order refusing to grant continuation of registration under section 184(7) until the date of dissolution was questioned for its legality. The Tribunal was instructed to assess the impact of the retrospective amendment to section 187 on this situation and determine the necessity of an additional statement of the case.

Requirement of application in Form No. 11A for change in constitution or succession of the firm:
The unsettled legal position regarding the change in the constitution or succession of the firm was highlighted. The Tribunal's finding that the applicant should have submitted an application in Form No. 11A before the end of the accounting year, and the refusal to condone the delay, was challenged. The Tribunal was directed to consider the effect of the retrospective amendment and provide further clarification on the necessity of an additional statement of the case.

Error in holding only one assessment for the entire previous year:
The Tribunal's decision on conducting only one assessment for the entire previous year was questioned for its legal accuracy. The impact of the retrospective amendment to section 187 was emphasized, and the Tribunal was directed to reevaluate this aspect in light of the amendment. The necessity of an additional statement of the case was stressed for a comprehensive assessment of the situation.