9911796707
TMI Blog1973 (12) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... valid declaration in law. This question arises in the context of the following facts. The respondent-assessee is a partnership firm. The question relates to the assessment of the assessee's income for the assessment year 1967-68, the relevant accounting period being Samvat year 2022. It is an admitted position that the accounting period ended on 12th November, 1966. For assessment year 1967-68 the assessee filed his return on August 19, 1968, along with a declaration under section 184(7) of the Act. However, this declaration was not signed by two of its partners, namely, Sajanben Zaverilal and Divyakant Zaverilal. The said declaration was, therefore, defective. However, on April 16, 1969, the assessee filed a revised return along with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax Act, 1961. They had made certain statements to the Commissioner, as a result of which the Commissioner's doubt as regards the declaration dated June 13, 1966, was strengthened. The Additional Commissioner thereafter called upon the assessee to show cause why the order of the Income-tax Officer treating the assessee as a registered firm should not be cancelled under section 263 of the Act in so far as it was prejudicial to the interests of the revenue. The assessee, however, did not appear before the Commissioner but submitted a written reply. The explanation of the assessee was that though it is true that the declaration was made on June 13, 1966, it is not true that it was meant for the assessment year 1966-67. According ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Commissioner. Being aggrieved by the decision of the Tribunal the revenue has preferred this reference in which the Tribunal has referred the following question for our opinion: " Whether, on the facts and in the circumstances of the case, the declaration in Form No. 12 stated to have been signed by all the partners on June 13, 1966, could be considered as a valid declaration for the purpose of section 184(7) in respect of the assessment year 1967-68 ? " On the face of it, the question which is framed above does not bring out the real controversy between the parties because, as stated above, so far as the findings of facts are concerned, the Tribunal has recorded all these findings in favour of the assessee and in this reference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n would be good even for subsequent years. But this proposition is qualified by the proviso which is in the following terms: "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. This proviso shows that even if a firm is granted registration for an assessment year the said registration would be good for the subsequent assessment year only if it furnishes the declaration to the effect that there was no cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e (...... 19 ......) of dissolution of the firm] ....... We further declare that the information given above is correct and complete. The contents of the Form quoted above show that the firm which wants to continue its registration for the subsequent years is expected to make a declaration that there has been no change in its constitution, or in the shares of the partners up to the last date of the previous year relevant to the assessment year. From these provisions it is quite evident that the declaration which is contemplated by section 184(7) of the Act is the declaration that up to the last date of the accounting period the constitution of the firm and the shares of the partners have remained unchanged. The question, therefore, is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aining registration in a particular year. But this was made conditional on the making of a declaration that the constitution of the firm as well as the shares of its partners continued to remain the same as mentioned in the instrument of partnership, on the strength of which the original registration was given. Therefore, the right of a firm to continue its registration is made conditional upon a declaration of the type mentioned above. If no such declaration is made then it results in non-compliance with the provisions of the section itself. Under the circumstances the declaration which is made by the assessee in the middle of the accounting period is found to be no declaration at all. In other words, the Income-tax Officer concerned has c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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