Explanation to section 185(1) of the Income-tax Act, 1961-Filing of Form No.12A in the case of coparcener of HUF being a partner in a firm-Clarification regarding - Income Tax - 224/1977

Explanation to section 185(1) of the Income-tax Act, 1961-Filing of Form No.12A in the case of coparcener of HUF being a partner in a firm-Clarification regarding Circular No. 224 Dated 22/6/1977 To All Commissioners of Income-tax. Sir, Sub.: Explanation to section 185(1) of the Income-tax Act, 1961-Filing of Form No.12A in the case of coparcener of HUF being a partner in a firm-Clarification regarding. Reference is invited to the Board's Circular No. 207 (F. No. 220/20/76-ITA.II dated 24-9-1976)* wherein it was explained that the karta of the HUF cannot be regarded as a benamidar of the HUF within the meaning of the Explanation to section 185(1) of the Income-tax Act, 1961, and as such there is no obligation to file Form No.12A in such cases. 2. The Board have examined the question whether the provisions of clause (b) of Explanation to section 185(1) will apply to a case where a coparcener other than a karta of HUF is a partner in a firm on behalf of his HUF. The Board is of the view that a coparcener of a HUF cannot be regarded as a benamidar of the HUF and as such there is no obligation to file Form No.12A in such cases. 3. The contents of this circular may please be brought to the notice of the officers working in your charge for information and guidance. Yours faithfully, (Sd.) J.P. Sharma, Secretary, Central Board of Direct Taxes. *See [1976] 105 ITR (St.) 54.