Law:

Section:

Section 185 of the Income-tax Act, 1961 - Firm - Registration - Genuineness of - Assessment year 1974-75 - Assessee-firm applied in Form No. 11 for registration on 11-1-1974 - During relevant accounting period from 1-4-1973 to 31-3-1974, there was no change in constitution of firm or shares of its partners - ITO refused registration on grounds that aforesaid application was not in Form No. 11A and that in its application assessee mentioned its name of branch office, viz ., 'JWM' and not its name of head office, viz., 'JSJ' - Whether, on facts, assessee had rightly made application in Form No. 11 and mere fact that instead of writing firm, name of head office, name of branch office was mentioned in application, provided no justification to refuse registration - Held, yes Facts The assessee-firm applied in Form No. 11 for registration for the assessment year 1974-75 on the basis of application filed on 11-1-1974. During the relevant accounting period, there was no change in the constitution of the firm. The firm name of head office was 'JSJ', whereas the name of its branch office was 'JWM'. The ITO found two defects in the application (1) that the application should have been in Form No. 11A, and (2) that instead of giving the firm name of the head office, the firm name of branch office was mentioned for the purpose of registration. As the assessee failed to rectify the aforesaid defects within the period allowed by the ITO under section 185(2), the registration of partnership was refused. On second appeal, the Tribunal held that both the aforesaid defects were not defects in the eye of law and the ITO was directed to entertain the application as a valid one and process the same for registration under section 185(1). On reference : Held In the instant case, a new firm consisting of four partners came into being with effect from 1-4-1973 and the application for its registration was filed on 11-1-1974 in Form No. 11. During 1973-74, the previous year, there was no change in the constitution of the firm or in the shares of the partners before the date of application for registration. Hence, the application was rightly made in Form No. 11 and the decision of the ITO,…

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