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TMI Blog1984 (10) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... nstitute an instrument of partnership as required under section 184 of the Income-tax Act, 1961 ? " The facts necessary for appreciating the contentions of the parties are as follows: By a deed of partnership dated December 16, 1970, four partners were carrying on business. The accounts of the firm are to be closed by the end of December each year, that is, the accounting year is the calendar year. The partnership was registered under the provisions of the Indian Partnership Act and registration was also granted by the Income-tax Officer under section 185 of the Income-tax Act. The firm continued to carry on business and, while so, on August 3, 1973, one of the partners by name Aswathanarayanaiah died. He left a will by which he directed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the foot of the said entry. On August 22, 1973, information was sent to the Registrar of Firms intimating the death of the deceased and that his three daughters are admitted into partnership and would continue as partners up to December 31, 1975. A return was filed by the assessee-firm on August 2, 1974, together with Form No. 12 under rule 24 of the Income-tax Rules for the entire calendar year 1973 relevant to the assessment year 1974-75. In the declaration under the said Form No. 12, it is mentioned that there was no change in the constitution of the firm till August 3, 1973, that is, the date of death of the partner. The declaration was signed by the surviving partners and the three daughters. When the assessment proceedings were taken ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the deceased) together with the original partnership deed constituted an instrument of partnership. The Tribunal further held that in view of the facts of this case, application under section 184(4) read with sub-section (8) of the said section in Form No. 11A framed under rule 22 should have been filed. The assessee had instead filed Form No. 12 framed under the same rule 24 under a bona fide impression that the application was required to be made under section 184(7). The Tribunal noted that the particulars and the declaration required in Form No. 11A are substantially the same as required in Form No. 12. In view of its findings that the entries in the book read with the partnership deed constituted an instrument of partnership and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nuine partnership firm, the terms of which agreement are evidenced by writing. The registration under the Income-tax Act, no doubt, allows taxation at concessional rate and an applicant must satisfy the statutory requirements for getting registration. As there is no statutory requirement as to the form of the partnership deed, the Tribunal was right in treating the entries coupled with the original deed as an instrument of partnership. It was sought to be contended on behalf of the Revenue that the Tribunal ought not to have allowed the assessee to change its application from one in Form No. 12 to Form No. 11A. This argument does not arise for decision on the question referred and the cases on which reliance was placed, viz., K. C. Trunk ..... X X X X Extracts X X X X X X X X Extracts X X X X
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