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TMI Blog1972 (10) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... The judgment of the court was delivered by SATISH CHANDRA J.- M/s. Nand Singh Taneja and Sons, Kanpur, the assessee, was a partnership-firm which had been accorded registration under section 185 of the Income-tax Act, 1961, up to and including the assessment year 1964-65. For the assessment year 1965-66, the assessee-firm, on 24th June, 1965, filed before the Income-tax Officer, a declaration, as required by section 184(7) of the Income-tax Act, 1961, in the prescribed Form 12, stating that there was 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 registration was granted. The last date for filing the return of income for the assessment year 1965- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal filed by the assessee. In the appeal of the revenue, the Tribunal held that the question of cancellation of registration under section 186(2) arises only if the registration of a firm has effect for the particular assessment year under section 184(7) of the Act. Before registration could have effect under section 184(7), two conditions had to be fulfilled by the assessee. One was the furnishing of the requisite declaration, the other being the filing of the return. Since the firm had not filed any return, the provisions of section 184(7) were not satisfied, with the result that the registration of the firm did not have effect for the assessment year 1965-66. In that view, it could not be said that the Income-tax Officer had cancelled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 with its return of income for the assessment year concerned, a declaration to that effect, in the prescribed form and verified in the prescribed manner. Sub-section (8) requires that where any such change has taken place, the firm shall apply for fresh registration. Section 185 gives the procedure for deciding the application for registration. The Income-tax Officer is to enquire into the genuineness of the fir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 144 is failure to make the return required by any notice given under sub-section (2) of section 139. It may at this by notice given under sub-section order shows that the notice under section 139(2) was duly served on the assessee on July 6, 1965. Under section 185(5), the Income-tax Officer can refuse to register the firm for such failure, namely, for failure to file a return. Under section 186(2), the Income-tax Officer could cancel registration, where the firm has been registered or its registration has effect under section 184(7). In the present case, the firm did not file any return. The Income-tax Officer could have under section 186(2) cancelled the registration or refused registration under section 185(5) in cases of an appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he return of income should be made a condition precedent to the validity of the declaration for the continuation of the registration, when the filing of the return is unnecessary for the first registration as well as subsequent registrations consequent on a change in the constitution of the firm. The purpose of registration in all the three categories of cases is the same, namely, to obtain the benefits conferred by the Act upon registered firms. The principal requirement of sub-section (7) of section 184 is that there should be 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 that the firm furnishes in the prescrib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sioner of Income-tax. It is equally well settled that past legislative history furnishes a useful guide in interpreting a vague provision of a statute. Section 26A of the Indian Income-tax Act, 1922, provided the procedure for registration of firms. Under it, the application was to be made by such time and with such particulars as may be prescribed. Rule 22 provided that the application should be made before the end of the relevant previous year. Under the Act of 1922, there was no requirement that the application for registration ought to be made along with the return of income. The subsequent legislative history of section 184(7) leads to the same conclusion. Section 184(7) was repealed and re-enacted by the Taxation Laws (Amendment) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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