Law:

Section:

Section 184 of the Income-tax Act, 1961 - Firm - Registration - Entitle-ment to - On 3-11-1969 assessee-firm filed application for registr- ation in prescribed form -Deed of partnership was, however, exe- cuted only on 8-1-1970 - Therefore, application for registration was not accompanied by original or certified copy of said deed though original deed and copy thereof were filed later - Whether it could be said that a failure on part of assessee to annex instrument of partnership constituted a basic defect, and, therefore, assessee was not entitled to registration - Held, on facts, no Facts On 3-11-1969, the partners of the assessee-firm filed an application for registration of the firm in Form No. 11. The deed of partnership was, however, executed only on 8-1-1970. Therefore, the application for registration was not accompanied by the original or certified copy of the deed of partnership, though the original deed and a certified copy thereof were filed later. The ITO, however, held that there was no valid application moved before him for registration as the failure on the part of the assessee to annex the instrument of partnership constituted a basic defect which rendered the assessee's claim for registration as unsustainable. He, therefore, rejected the application for registration. On appeal, the Tribunal also upheld the ITO's order. On reference: Held Section 184 requires that the partnership should be evidenced by an instrument and the application should be accompanied by the original instrument evidencing the partnership at the date of the application. The words 'evidenced by an instrument of partnership' do not indicate necessarily that the evidence should be a contemporaneous evidence when the application is made because, in the ultimate analysis, the purpose of any evidence and for that matter the instrument of partnership is to satisfy the authority that there was a genuine and valid partnership in existence in the accounting year. If a close scrutiny is made of this requirement as prescribed in rule 22(2) of the Income-tax Rules, 1962 it is manifestly clear that such evidence in the nature of instrument must be in relation to the partnership as it…

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