9911796707
TMI Blog1986 (10) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... assumption that there will not be any delay in transit. We, therefore, condone the delay in filing the application. The assessee is a firm of four partners constituted under a partnership deed dated March 26, 1960. The assessee carries on several businesses including business in contracts. By an application dated March 31, 1960, the assessee-firm applied for registration for the assessment year 1960-61 under section 26A of the Income-tax Act, 1922, and by another application dated June 30, 1961, it applied for renewal of registration for the assessment year 1961-62 under section 26A of the Act. In this application for renewal of registration, a certificate was given by the assessee to the effect that the profits of the previous year were divided or credited. As a matter of fact, the profits from the P. W. D. contracts and the lock-up contracts had not been divided at all and only the profits from the other businesses had been divided. The Income-tax Officer was of the view that the certificate filed by the assessee along with its application for registration was not correct as the total profits of the firm had not been divided or credited and that, therefore, the firm was not ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year 1961-62, and raised the following contentions : (i) In view of the fact that registration had been granted to the assessee by the Appellate Assistant Commissioner for the assessment year 1960-61, the assessee was entitled under section 184(7) of the Income-tax Act, 1961, to renewal of registration for the assessment year 1961-62 ; (ii) that the certificate of the assessee furnished along with its application for renewal of registration was not incorrect in view of the fact that the profits from the contract business could be divided only after the work was completed ; and (iii) that the assessee was entitled to renewal of registration at least so far as the businesses other than contract business were concerned. The Tribunal negatived all these contentions of the assessee. As regards the first contention, the Tribunal held that the order granting registration for the assessment year 1960-61 was an order passed under section 26A of the Income-tax Act, 1922, and that, therefore, the provisions of section 184(7) of the new Act could not be invoked by the assessee. As regards the second contention, the Tribunal held that it respectfully followed the interpretation of para ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar had been distributed is an incorrect declaration, the assessee is not entitled to the registration prayed for. The principal question that arises for decision in this case is whether the assessee's application for registrations should have been dealt with under the provisions of the Act and the Rules framed thereunder or under the provisions of the 1922 Act and the Rules framed under that Act. As mentioned earlier, the Income-tax Officer dealt with that application under section 185(1)(a) of the Act. In the matter of registration of firms, substantial changes in law have been made under the Act. Under the 1922 Act, an application for renewal of registration had to be dealt with in the same manner as an application for registration for the first time. That is not the position now. Under section 184(7) of the Act, where a registration is granted to any firm for any assessment year, it shall have effect for every subsequent assessment year : Provided that- (i) there is no change in the constitution of the firm or the shares of the partners as evidenced by the instrument of partnership on the basis of which the registration was granted ; and (ii) the firm furnishes, along ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the provisions of the Act and the Rules framed thereunder. Form No. 12 of the forms prescribed under the Rules framed under the Act deals with declaration under section 184(7) of the Act for continuation of registration. That form reads : " Form No. 12. (See rule 24) Declaration under section 184(7) of the Income-tax Act, 1961, for continuation of registration. To The Income-tax Officer, .............................. Re : *Assessment year 19...... 19... We, on behalf of ......................................................... (Name of firm) declare that :-- (i) our firm was granted registration for the @/assessment year 19...... 19....... vide order dated......... 19......., passed by the Income-tax Officer ..................... ; and (ii) there has been no change in the constitution of the firm or the shares of the partners since the last day of the previous year relevant to the @/assessment year 19...... 19...... up to the last date of the previous year relevant to the *assessment year 19...... 19...... **/(or to the date 19...... ) of dissolution of the firm]. We further declare that the information given above is correct and complete. Dated ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
