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TMI Blog1982 (9) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... on 31st Oct., 1975, the firm was dissolved and assets and liabilities were taken over by Smt. Satya Devi and Mrs. Madhu Gupta. A regular dissolution deed was drawn up to confirm the dissolution and Form No. 12 was filed in time claming registration upto 31st Oct., 1975. Return for 1976-77 was filed separately by erstwhile firm consisting of only two partners. As the successor firm consisting of three partners and by the successor firm failed to apply for the registration, status in the case of successors firm was claimed to be that of unregistered firm. The ITO completed the assessment vide order dt. 3rd Feb., 1979 under s. 143(3) and refused registration to the assessee firm even upto 31st Oct., 1975 vide his order of same date under s. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s section." From the above. we notice that a fresh application u/s 184(8)of the Act is contemn. Plated in case of change of constitution and the mandate of the section is that an application for registration may be made on behalf of the firm, if the partnership is evidence by an instrument of partnership. Now in the present case, the assessee had filed registration application on 25th April, 1976. There being admittedly no deed executed after death of Raj Kumar we fail to see as to how a fresh application could be filed under s. 184(8) of the Act as was pleaded before us also by the revenue's representative. 5. Similar cases have come before this bench of the Tribunal, one in ITA. No 325. Chandi/79 (asst. yr. 1978-79)ITO vs. M/s Khail D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. 6. For the revenue, Sh. R.S. Khichi also placed reliance on a judgement of M.P. High Court in the case of Nawab & Bros. vs. CIT (1980)124 ITR 307(MP) and submitted that in view of the ratio laid down in that case. With the change in constitution of the firm, the earlier registration ceased to exist ITO in the case of the assessee firm and, therefore, there was no question of accepting the assessee's plea that for a part of the year it was entitled to continuation of registration. We have apprised ourselves in this case that when Sh. Vasdev retired on 24th June, 1976, books of account were closed and the profits distributed between the partners in accordance with the partnership deed which governed their relations in the earlier years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th March, 1963 to 31st March, 1963 could not also be granted as there was no operative deed during that period. The AAC reversed the ITO's order and held that the assessee should have been granted registration benefit on the strength of the deed dt. 1st Jan., 1964 and condoned the delay in filing the application for registration could not be granted to the firm on the basis of the deed dt 1st Jan., 1964 as it was executed outside the year of a/c. The Tribunal, however, confirmed the order of the AAC on the view that the original partnership deed dt 28th March, 1958 read with the release deed dt 4th March, 1963 evidence the existence of a partnership by the two continuing partners with their respective shares and hence there was sufficient c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case, rightly applied for seeking benefit of continuation of registration for the period upto 24th June, 1976 and such benefits could not be denied because of the inability of the firm with a changed constitution to execute a new deed and/or apply for fresh registration. We, therefore direct the ITO to grant benefit of continuation of registration to the assessee firm upto the period 4th June, 1976". There could be no better case than the present one in which our observations in para 7 above could be more relevant. This is a very peculiar case and we fail to understand as to how the revenue could deny registration benefit to the firm upto 5th March, 1976. 6. Being consistent with the view which we have taken in the two noted cases, we dir ..... X X X X Extracts X X X X X X X X Extracts X X X X
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