Law:

Section:

Section 184 of the Income-tax Act, 1961 - Firm - Assessed as such - Assessment years 1993-94 and 1994-95 - Whether production of certified copy of instrument of partnership is mandatory for claiming assessment in status of a firm for any assessment year commencing from 1993-94 onwards, irrespective of whether such an assessee was assessed as a registered firm up to 1993-94 - Held, yes FACTS The assessee was assessed as a registered firm until the assessment year 1992-93. From 1-4-1993 onwards, major amendments were introduced in Chapter XVI of the Act dispensing with registration of firms for the purpose of assessment under the Act. Thereafter, for the two assessment years, namely, 1993-94 and 1994-95, the assessee was declined the status as a 'firm' for the purpose of assessment for the reason that it did not attach certified copy of the instrument of partnership along with income-tax returns filed for the said two years. On appeal, the Commissioner (Appeals) accepted the assessee's contention that non-filing of the certified copy of the instrument of partnership along with returns was a bona fide omission and the same was made up by producing it before the Assessing Officer when assessments were taken up. The Commissioner (Appeals), accordingly, directed the Assessing Officer to make assessment of the assessee as a 'firm' granting it eligible deduction otherwise declined under section 185. On the revenue's appeal, the Tribunal reversed the order of the Commissioner (Appeals) on the ground that there was no evidence about the production of the copy of instrument of partnership at the time of assessment. On appeal to the High Court : HELD Prior to the introduction of the amended provisions of section 184 which came into force with effect from 1-4-1993, a firm could be assessed either as a registered firm on complying with the formalities or otherwise only as an 'Association of Persons'. However, with effect from the assessment year 1993-94 onwards, registration of a firm has been dispensed with, but for the first time, if a firm seeks registration in that status for any assessment year commencing on or after 1-4-1993, the firm has to furnish the certified copy…

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