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TMI Blog1970 (11) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... shwar Lal, entered into partnership. The deed of partnership is dated April 30, 1963 Their shares were 60% and 40% respectively. It was agreed that the business of the firm should be carried under the name and style of Messrs. Whiteways General Stores as its head office, and Messrs. Anarkali as its branch office. The firm applied for registration for the assessment year 1964-65. Registration was granted. It was renewed for the assessment year 1965-66. On April 1, 1965, the two partners executed an agreement in order to change the name of the firm. The name of the firm at the head office was changed from " Messrs. Whiteways General. Stores " to " Messrs. Delight Stores " and the name " Messrs. Anarkali " at the branch office was changed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... states : " Where 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 ......" The question, therefore, arises whether the change of name of the firm has resulted in a change in the constitution of the firm. If there has been such a change, the assessee is not entitled to renewal of registration. On the other hand, if there has been no change in the constitution of the firm the assessee is prima facie entitled to renewal of registration. According to clause (23) of section 2 of the Income-tax Act, 1961, the expressions " firm partner " and "partnership" have the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ners continue with a change in their respective shares or in the shares of some of them." It will be seen that according to sub-section (2) of section 187 of the Income-tax Act, 1961, the change in the constitution of a firm may come about in two ways--firstly, some partners may leave the firm, or some new partners may join a firm ; secondly, the shares of the various partners may be altered. The language of proviso (1) of sub-section (7) of section 184 of the Act suggests that a change in the shares of partners is not a change in the constitution of the firm. The plan is somewhat different from that in sub-section (2) of section 187 of the Act. Whether we consider the plan of the proviso to sub-section (7) of section 184 or that of sub-s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f of .... (name of firm) declare that ......" According to Mr. Brij Lal Gupta, the name of the firm must be contained in such a declaration. It is true that it is very convenient to have a firm name for many purposes. But it does not follow that the name of a firm is an essential ingredient or forms part of the constitution of the firm. The petition is allowed with costs. The order of respondent No. 1 refusing renewal (annexure " F ", dated July 27, 1968), the two orders of respondent No. 2 (annexures " G " and " H " to the writ petition), and the order of the Commissioner of Income-tax, Lucknow (annexure " I "), to the writ petition, are quashed. We direct respondent No. 1 to make the consequential amendments in the two assessment orders ..... X X X X Extracts X X X X X X X X Extracts X X X X
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