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TMI Blog1981 (4) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... wo partners, as a partner and carried on its own business. The deed of partnership was executed on October 14, 1958, and an application for registration under s. 26A of the Indian I.T. Act, 1922 (hereinafter referred to as " the Act "), was filed before the ITO on November 6, 1958. It is also necessary to note that the firm had applied for registration under the Indian Partnership Act, with the Registrar of Firms on October 24, 1958, and the Registrar of Firms, after necessary enquiries, granted registration on December 31, 1958 . The ITO held that the firm was not genuine. He also held that as the firm was not registered with the Registrar of Firms before the end of the accounting year, the application for registration filed by the firm w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er s. 256(1) of the I.T. Act, 1961, the following question has been referred to us : " Whether, on the facts and in the circumstances of the case, the application for registration was filed in time and in conformity with the rules for granting registration ?" We have already stated hereinabove the relevant dates on which the partnership deed was executed, the application for registration was made under s. 26A of the Act, the application for registration was made to the Registrar of Firms and the certificate of registration was granted to the firm by the Registrar of Firms. There is, however, one important fact as well as the date which needs to be stated, the significance of which seems to have been overlooked both by the AAC as well as b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd shall, for any year of assessment up to and including the assessment for the year ending on the 31st day of March, 1953, be made before the 28th February, 1953, and for any year of assessment subsequent thereto, be made- (a) where the firm is not registered under the Indian Partnership Act, 1932 (IX of 1932), or where the deed of partnership is not registered under the Indian Registration Act, 1908 (XVI of 1908), and the application for registration is being made for the first time under the Act. (i) within a period of six months of the constitution of the firm or before the end of the ' previous year' of the firm, whichever is earlier, if the firm was constituted in that previous year, (ii) before the end of the previous year in any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he very vital recital in the deed of partnership and the admitted fact on record that the partnership was, in fact, constituted and it started working as such with effect from October 23, 1957. Having landed in this error, both the authorities below came to the conclusion that the application for registration made under s. 26A on November 6, 1958 was within a period of six months from the date of October 14, 1958, when the partnership deed was formally executed and further that the same was made before the end of the previous year, viz., 1957-58. We may also in this connection point out that both the authorities committed another error in holding that the grant of certificate of registration by, the Registrar of Firms related back to the da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egistration under s. 26A of the Act for the assessment year 1958-59 on March 31, 1958, which was the last day of the previous year. On the same date, the firm delivered to the Registrar of Firms an application in the prescribed form under s. 58(1) of the Indian Partnership Act. The papers were, however, returned by the Registrar for due compliance with the formalities and the firm was subsequently registered under the Partnership Act on the 15th November, 1958. The application for registration under s. 26A of the Act was rejected on the ground that the firm had not been registered under the Partnership Act on 31st March, 1958, and that the application was not filed within six months of the date of the constitution of the firm, and, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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