COMMISSIONER OF INCOME TAX, BIHAR, PATNA versus AMAR SINGH GOWAMAL & SONS, JHARIA, DHANBAD

Citation: [1986] 3 S.C.R. 308 · Decided: 17-07-1986 · Supreme Court of India · Bench: R.S. PATHAK · Disposal: Dismissed

Judgment (excerpt)

A 
COMMISSIONER OF INCOME TAX, BIHAR, PATNA 
y 
v. 
AMAR SINGH GOWAMAL & SONS, JHARIA, DHANBAD 
B 
JULY 17, 1986. 
[R.S. PATHAK AND SABYASACHI MUKHARJI, JJ.] 
} 
Income Tax Act 1961, s.184/26A-Registration of firm-Regis-
( 
tration-Whether ensures for every subsequent year. 
' 
c 
--
The respondent-assessee firm was registered in 1945 under the 
( 
Indian Income Tax, 1922. The registration was up to the assessment 
year 1961..(i2. On 8th November, 1961, the last day of the previous year 
relevant to the assessment year 1962-63, there was a cliange in the 
D 
constitution of the firm. From November 9, 1961, a new btstrument of 
partnership came into existence. On September 29, 1962 the respon-
dent-assessee firm applied for registration in Form UA under the 
Income Tax Act, 1961. The Income Tax Officer refused registration on 
the ground that the case fell under section 184(7) of the Act. The Tri-
bunal upheld the order of the Income Tax Officer. 
E 
The High Court in a reference made by the Tribunal under Sec-
lion 256(1) of the Act. held that on the date of application, the coustitu-
lion of the assessee firm had changed and that the application was for 
registration of the firm which was in existence throughout the length of 
the previous year in relation to the first assessment under the Act of 
F 
1961 and that being so, in accordance "ith Rule 22(4)(ii) of the Income 
Tax Rules, the application tiled in Form 11-A was a good and valid 
application. 
Dismissing the appeal by the revenue, this Court, 
G 
HELD: 1. The High Court was right in holding that the applica-
lion tiled in Form 11-A was a good and valid application. [313C-D] 
2.1 Section 26A of the 1922 Act dealt with the procedure in regist-
ration of the fiml. Under the provision, application might be made to 
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the Income-tax Officer on behalf of any firm constituted under an in-
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strument of partnership specifying the individual shares of the partners 
308 
C.I.T. "· A.S. GOWAMAL 
309 
1' 
for registration for the purpose of that Act and of any enactment for the 
A 
time being in force either relating to income-tax or snper-tax. The 
application was required to be made by such person or persons and was 
required to contain such particulars and had IQ be in such form and was 
required to be verified in snch manner as had been prescribed. It was 
thereafter required to be dealt with by the Income-tax Officer, in the 
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manner prescribed. [311G-H; 312A-B] 
~. 
The Act of 1922 contained power for the Central Board to make 
....l...1 
roles nnder the said Act. Rule 2(a}(i) of said Rules required the filing of 
an application for registration within a period of six months of the 
coustitntion of the firm whichever was earlier or in any other case c 
before the end of the previous year, as was required by clause (ii). 
Application for renewal of registration under role 6 had to be filed 
before the 30th day of Jnne of a particular assessment year. [3128-C] 
,( 
2.2 There were two types of forms given in form I which was the 
form of application for registration of the rmn under section 26A of 
D 
1922 Act. One was an application for registration simpliciter where 
there was no registration but when the firm as constituted on the date of 
the application was different from the one whose income was under 
assessment then in schedule (B) of the form particulars of the appor-
~ 
tionment of income, profits or gains or loss of the business in the previ-
ous year, between the partners who were entitled to shares in such 
E 
income, profits or gains or loss had to be given. The form of the renewal 
application was appended to role (6). [312C-E] 
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2.3 Under the 1922 Act both the forms were meant for the 
purpose of first registration of the rmn and not renewal, bot the form of 
renewal appended to role 6 was different. Essentially, similar is the 
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position nnder the 1961 Act. Chapter XVI of the 1961 Act deals with 
that position. Section 182 of the Act deals with assessment ofregistered 
firms, and section 184 of the Act deals with application for registration 
of firm. Sub-section (4) of Section 184 stipulates that the application 
should be made before the end of the previous year for the assessment in 
respect of which registration was sought. The Income-tax Officer had 
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power to entertain application even after the end of the previous year. 
, 
[312G-H; 313A-B] 
l 
2.4 The scheme for renewal under 1961 Act was different from 
the one under the 1922 Act 

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