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TMI Blog2009 (9) TMI 629X X X X Extracts X X X X X X X X Extracts X X X X ..... GMENT C. N. Ramachandran Nair J.- The connected appeals are filed by the assessee challenging the orders of the Income-tax Appellate Tribunal, Cochin Bench, wherein the denial of status claimed by the assessee as a "firm" by the Assessing Officer is confirmed by the Tribunal for the assessment years 1993-94 and 1994-95. We have heard learned counsel appearing for the appellant and the standing counsel Sri Jose Joseph, who took notice on admission. 2. The assessee was being assessed as a registered firm until the assessment year 1992-93. From April 1, 1993, onwards, major amendments were introduced in Chapter XVI of the Income-tax Act dispensing with registration of firms for the purpose of assessment under the Act. The newly substitute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... instrument of partnership along with the return of income for the assessment year relevant to such previous year and all the provisions of this section shall apply accordingly. (5) Notwithstanding anything contained in any other provision of this Act, where, in respect of any assessment year, there is on the part of a firm any such failure as is mentioned in section 144, the firm shall be so assessed that no deduction by way of any payment of interest, salary, bonus, commission or remuneration, by whatever name called, made by such firm to any partner of such firm shall be allowed in computing the income chargeable under the head `Profits and gains of business or profession' and such interest, salary, bonus, commission or remuneration sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ims of deduction towards the payment of interest, salary, bonus, commission, remuneration etc. to partners is perfectly in order. It is against the order of the Tribunal, the assessee has come up with these appeals before us. 4. The question to be considered is whether non-filing of a certified copy of the instrument of partnership along with returns filed for the assessment years 1993-94 and 1994-95 is fatal to the assessee's claim for assessment in the status as a "firm". The contention of counsel for the assessee is that the firm, which was assessed in that status until 1992-93, need not furnish the certified copy of the instrument of partnership, for assessment in the status as "firm" for the subsequent assessment years because there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ship if assessment was claimed in the status of firm for any assessment year commencing from 1993-94 onwards. Once the status as "firm" is made for any assessment year commencing from 1993-94 onwards based on the certified copy of instrument of partnership produced, then by virtue of operation of sub-section (3), the firm will be assessed in the same status for all subsequent years without production of any certified copy of the instrument of partnership until there is a change in the constitution of the firm. For assessment as firm after change in the constitution of the firm, sub-section (4) of section 184 requires production of revised instrument of partnership along with the return for the assessment year relevant for the previous year ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tself does not have such a case in the ground raised by them. We do not propose to go into the question whether the claim of the assessee that the certified copy of the instrument of partnership was filed, subsequent to the filing of returns, but before completion of assessments, is correct or even if filed, whether it is sufficient compliance with the provisions for granting the status as firm. However, in this particular case, if the findings of the Commissioner are true, then we feel, the assessee is entitled to the benefit of assessment as a "firm" because 1993-94 is the first year of assessment after the amendment came into force and sub-section (3) creates confusion as to whether the continuation of status is based on any assessment a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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