9911796707
TMI Blog1991 (11) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... eena (minor) 3. O. Imbichipathu 11. O. Mohamed Shareef (minor) 4. O. Zubaida 12. O. Nazzer (minor) 5. O. Jameela. 13. O. Rasheed (minor) 6. O. Sefiya. 14. O. Mumtaz (minor) 7. O. Syed Mohammed 15. O. Rubiya (minor) 8. O. Zuhara. S. No. 9 above attained the age of majority on 27-11-1975 and became a full-fledged partner and a fresh partnership deed was executed by an instrument in writing on 17-1-1976. S. No. 10 attained the age of majority on 8-12-1978 and a fresh deed was executed on 17-1-1979 making him a full-fledged partner. S. No. 11 attained the age of majority on 10-2-1981 and a fresh partnership deed was executed on 20-1-1982 making him a full-fledged partner. The assessee's previous year ended on 16th January of each ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unity to file Form No. 11-A and the delay should be condoned, he relied on the decision of the Kerala High Court in the case of Pushpaka Travels [IT Reference No. 50 of 1979 dated 8-7-1982] that the refusal to condone the delay in filing the relevant form is not appealable. Thus, he upheld the order of the Income-tax Officer. 3. We have heard rival submissions. The assessee firm has been granted registration from year to year since its inception in 1972 upto and including the assessment year 1982-83. The learned authorities have taken the view that when the minor becomes major there is a change in the constitution of the firm and, therefore, the assessee should have filed Form No. 11A within the previous year ending on 16-1-1983 and this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e a partner with effect from 10-2-1981 itself and the business of the firm was continued as such from that date. Therefore, the erstwhile minor became a full-fledged partner in the previous year ending on 16-1-1982 either in terms of section 30(5) of the Indian Partnership Act or on his own volition. But the previous year ending on 16-1-1982 is in relation to the assessment year 1982-83. However, for that assessment year continuation of registration had been granted by the revenue as if no change in the constitution of the firm had taken place. Now it is only in respect of the previous year ending on 16-1-1983 relevant to the assessment year 1983-84 that the Income-tax Officer woke up for the first time and held that the minor had become ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of registration upto and inclusive of the assessment year 1982-83. The assessee had a bona fide belief that it need not have to apply for fresh registration on the minor becoming major, in view of the Circular of the Board of Direct Taxes F.No. 76/1/67-IT (All), dated 20-3-1969 read with Circular F. No. 26/35/61-IT(AI) dated 3-1-1962. The CBDT has been consistently taking a sympathetic view in the matter of registration or continuation of registration as will be evident from Circular No. 4-D(XXV-25) 1966, dated 31-1-1966 (Chaturvedi and Pithisaria's Income-tax Law, Third Edition, Volume 4, page 3599) : " Registration of firms--another departmental Circular :-- The following circular is also relevant to the provisions of sections 184 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s an order under section 185(1)(b) of the Act only in cases where he is satisfied that there was no genuine firm in existence during the previous year; the provisions of that section will not apply in a case where the Income-tax Officer refuses to condone the delay in the filing of an application for registration and as such does not consider the application on its merits ". In the case of the assessee, the Income-tax Officer himself admits that the reason for the delay in filing the application was perhaps due to its bona fide belief that there was no change in the constitution of the firm, but has declined to grant registration on the ground that ignorance of law is not an excuse. Once the Income-tax Officer is satisfied about the bona ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
