Law:

Section:

Section 187 of the Income-tax Act, 1961 - Firm - Registration - Change in constitution of - Partnership deed of assessee-firm provided, inter alia, that where deed was silent, it would be governed by the Indian Partnership Act, 1032, save and except that on death of any partner, firm would not be dissolved and would be carried on by remaining partners and heir of deceased partner on terms and conditions to which they mutually agree - During relevant year one partner died and his son joined the firm as partner - No new partnership deed was executed - Declaration in Form No. 12 signed by remaining old partners and son of deceased partner was filed - Whether there was change in constitution of firm on death of old partner and induction of his son as partner - Held, yes Section 184 of the Income-tax Act, 1961 - Firm - Registration - Entitlement to - Whether on facts mentioned under head 'Firm - Registration - Change in constitution of assessee was entitled to registration up to date of death of old partner - Held, yes - Whether registration could be granted for period after death of old partner - Held, no Facts The assessee-firm was constituted under a deed of partnership with 17 members. The said deed provided, inter alia, as follows: "That where the deed is silent, it shall be governed by the Indian Partnership Act save and except that on the death or demise of any partner the firm shall not be dissolved but shall be carried on with the remaining partners and that heir and representative of the deceased partner who resides in India on such terms and conditions to which they mutually agree." On 4-6-1964, one of the partners, Q, died and his son, P, joined the firm as a partner. New deed of partnership evidencing the change in the constitution of the firm was not executed before 4-11-1964. The assessee filed a declaration in Form No. 12 for the relevant assessment year 1965-66, previous year ending on 4-11-1964, under section 184(7), The declaration was signed by the 16 members who had continued all along and also by F who had become a partner in place of his deceased father. The ITO held that the admission of a new partner in place of the deceased partner amounted…

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