Law:

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Section 183 of the income-tax act, 1961-Firm-Assessment of unregistered firm-assessee-firm, though registered in earlier assessment year, did not seek renewal of registration and filed return as unregistered firm in subsequent assessment years-Whether ITO could validly complete assessment on firm as unregistered firm in-spite of the fact that its partners were already assessed separately in respect of their respective share of income from firm-Held, on facts, yes Facts The assessee-firm was assessed as a registered firm for the assessment year 1966-67. For the subsequent assessment years 1967-68 and 1968-69, the assessee did not seek renewal of registration, but filed returns in the status of an unregistered firm. Consequently, the ITO completed its assessments in that status on 28-1-1971. On appeal, the assessee, basing itself on certain judicial decisions pertaining to the 1922 Act, contended that the assessments of the firm as such were invalid because two of its partners had already been separately assessed before 28-1-1971. for each of these years on their share income from the firm. The AAC and the Tribunal rejected this contention in successive appeals and upheld the assessments made by the ITO. On reference: Held The matter stood concluded by the of this Court in the case of Punjab Cloth Stores v. CIT [ 1980] 121 ITR 605 (Delhi) in which it was held that in terms of section 4 read with section 2(31) of the 1961 Act, there was no bar under the 1961 Act against assessing an AOP even if its members had already been assessed separately in respect of their respective shares of income from it There was no material distinction between an AOP and an unregistered firm so far as the present issue before the Court was concerned. Consequently, the Tribunal was correct in holding that the assessment on the assessee-firm in the status of unregistered firm was validly made. Case review Punjab Cloth Stores v. CIT [1980] 121 ITR 605 (Delhi) followed. Cases referred to Punjab Cloth Stores v. CIT [1980] 121 ITR 604 (Delhi), Ch. Atchaiah v. ITO [1979] 116 ITR 675 (AP), CIT v. Blue Mountain Engg. Corporation [1978] 112 ITR 839 (Mad.) and CIT v. Pure Nichitpur Colliery Co.…

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