Law:

Section:

Section 186 of the Income-tax Act, 1961 - Firm - Position prior to 1-4-1993 - Assessment years 1971-72 to 1976-77 - Assessee-firm was granted registration for assessment year 1971-72 that was also renewed for assessment years 1972-73 to 1976-77 - Subsequently, Assessing Officer finding that registration had been allowed on basis of deed which was signed only by one partner for himself and for other partners by forging their signatures, and that one of partners was a minor during assessment year 1971-72, cancelled registration - Thereupon, assessee-firm executed a fresh partnership deed and applied for registration - Whether a partnership deed executed with a minor as a partner is an invalid agreement and such firm cannot be called a genuine firm entitled to registration - Held, yes - Whether, therefore, cancellation of registration wrongly granted originally for assessment year 1971-72 had to be sustained - Held, yes - Whether defect of original document, i.e., partnership deed, containing forged signatures of all partners except one, was a defect that could not be cured - Held, yes - Whether, consequently, firm was not entitled to registration for assessment year 1972-73 and renewal for later years - Held, yes P.G.K. Warriyar and P. Balakrishnan (E) for the Petitioner. NRK Nayar and George K. George for the Respondent. JUDGMENT 1. The petitioner is challenging Ext. P8 revisional order of the Commis-sioner of Income-tax issued under section 264 of the Income-tax Act (hereinafter called 'the Act') confirming the cancellation of registration of the firm by the Assessing Officer under section 186(1) of the Income-tax Act. The partnership was constituted vide deed dated 28-3-1971 and application for registration filed in Form No. 11A for the assessment year 1971-72 was allowed. Registration was also renewed for the subsequent assessment years 1972-73 to 1976-77. However, the Assessing Officer thereafter noticed that the partnership deed produced by the petitioner on which registration was granted was signed only by one partner for himself and for other partners who are his sons by forging their signatures. It was also noticed that one of the partners was a minor…

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