Law:

Section:

Income-tax Act, 1922 -Section 26A -- Registration -Partnership -Deed executed sometime after the commencement of the accounting year -Given effect from commencement of accounting year -Registration, whether should be allowed from the commencement of the accounting year -Held yes -- Partnership -Execution of deed in later period of accounting year -Claim of registration for whole of accounting year permissible -- Corresponding Sections: Income-tax Ordinance, 1979 -Section 68 -- ORDER {The order was passed by A. MANNAN, Judicial Member}.---This appeal arises for an order passed by the Appellate Assistant Commissioner by which he had upheld an order of Income-tax Officer, rejecting the application under Section 26A for the assessment year 1961-62. 2. Application for registration was filed before the Income-tax Officer on 29th March 1961 claiming registration form 1st April 1960. The deed of partnership was executed on 3rd November 1960. The Income-tax Officer was of opinion that the partners could claim that the firm was constituted by an instrument of partnership on and from 3rd November 1960. He was also of the view that if the firm was constituted from 1st April 1960 then the appliation for registration should have been filed within six months from 1st April 1960. The application was, therefore, rejected as being barred by limitation. 3. The Appellate Assistant Commissioer observed that the appellant is not entitled to get registration before the execution of the partnership deed. Evidently this view was taken by the Appellate Assistant Commissioner on the basis of certain decisions of the Tribunal. He further found that no separate account for the period from 3rd November 1960 to 31st March 1961 namely the period covered by the partnership deed was maintained, the exact profit for this period could not be known and hence registration for the whole of accounting year could not be granted. The appeal was rejected. 4. All doubts as to whether registration under similar circumstances should be granted for the whole of the accounting year or for the period following the execution of the deed of partnership was set at rest by the decision of the Dacca High Court in…

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