Continuation of partnership registration upheld despite no fresh deed after minors attained majority; prospective circular could not defeat renewal.

Continuation of registration under section 184(7) was upheld where the assessee-firm filed Form No. 12 and the only objection was that no fresh partnership deed was executed after two minors admitted to benefits of partnership attained majority. The authority relying on the 03.01.1962 Board circular accepted that, when the genuineness of the partnership is not in doubt, renewal cannot be refused on that ground alone. The later circular dated 04.08.1977 was treated as prospective and inapplicable to the assessment year concerned. The referred question was answered in favour of the assessee and against the Revenue.

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Issues: Whether the assessee-firm was entitled to continuation of registration under section 184(7) of the Income-tax Act, 1961 despite no fresh deed of partnership being executed on two minors admitted to the benefits of partnership attaining majority.

Analysis: The continuation of registration had been claimed by filing Form No. 12. The Income-tax Officer refused renewal on the ground that no fresh partnership deed was executed after the minors became majors. The appellate authorities relied on the Board's circular dated 03.01.1962, which supported continuation where the genuineness of the partnership was not in doubt. The later circular dated 04.08.1977 was held to operate prospectively and therefore did not govern the assessment year in question.

Conclusion: The assessee-firm was entitled to continuation of registration, and the answer to the referred question was in the affirmative, in favour of the assessee and against the Revenue.

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