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TMI Blog1966 (7) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... Sub-section (1) provides: " Application may be made to the Income-tax Officer on behalf of any firm, constituted under an instrument of partnership specifying the individual shares of the partners, for registration for the purposes of this Act and of any other enactment for the time being in force relating to income-tax or super-tax." and sub-section (2): " The application shall be made by such person or persons, and at such times and shall contain such particulars and shall be in such form, and be verified in such manner, as may be prescribed; and it shall be dealt with by the Income-tax Officer in such manner as may be prescribed." Rules 2 to 6B of the Indian Income-tax Rules, 1922---framed by the Board of Inland Revenue in exerci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer cannot reject it, if there is a firm in existence as shown in the instrument of partnership. A firm may be said to be not in existence if it is a bogus or not a genuine one, or if in law the constitution of the partnership is void. The jurisdiction of the Income-tax Officer is, therefore, confined to the ascertaining of two facts, namely, (i) whether the application for registration is in conformity with the Rules made under the Act, and (ii) whether the firm shown in the document presented for registration is a bogus one or has no legal existence." and in the latter: " It is settled law that if a partnership is a genuine and valid one, the Income-tax Officer has no power to reject its registration if the other provisions of se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Court said that the essential conditions that should be fulfilled before a firm is entitled to registration are : " (1) That the firm should be constituted under an instrument of partnership, specifying the individual shares of the partners; (2) that an application on behalf of, and signed by, all the partners containing all the particulars as set out in the Rules, has been made ; (3) that the application has been made before the assessment of the income of the firm, made under section 23 of the Act (omitting the words not necessary for our present purpose), for that particular year ; (4) that the profits (or loss, if any) of the business relating to the previous year, that is to say, the relevant accounting year, should have bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unting period on 31st March, 1961, and all that the application could possibly say was: "We do hereby certify that the profits (or loss, if any) of the previous year will be divided or credited as shown in Section (B) of the Schedule and that the information given above and in the attached Schedule is correct." It is not disputed that this has been done. We are unable to see anything in the order of the Tribunal which will sustain the refusal of registration. It follows that the question has to be answered in the affirmative, that is, in favour of the assessee and against the department. We do so, but without any order as to costs. A copy of this judgment under the seal of the High Court and the signature of the Registrar will be se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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