Firm registration after partner's death was sustained for the assessment year, with reconstitution and prior application treated as sufficient.

Registration of a reconstituted firm for the assessment year 1966-67 was sustained where one partner died during the year and the widow was later admitted as a partner. The note applies the principle that a firm may remain entitled to registration for the part of the year up to the partner's death, and that a prior registration application can support registration of the reconstituted firm even if the later application was made in an incorrect form, provided proper compliance is allowed. The Tribunal's view that registration could be granted was therefore upheld in favour of the assessee and against the Revenue.

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Issues: Whether the Appellate Tribunal was right in law in allowing registration to the firm for the assessment year 1966-67.

Analysis: The assessment year in question related to the period during which one partner died, and the firm was thereafter reconstituted with the widow admitted as a partner. The assessee had already obtained registration for the accounting year up to the date of death, and the question was governed by the principle that the firm was entitled to registration for that part of the year. The application for registration of the reconstituted firm had been filed, though in an incorrect form, and the prior application was sufficient to sustain the direction for registration when proper compliance was permitted.

Conclusion: The Tribunal was right in allowing registration to the firm for the assessment year 1966-67, and the question is answered in favour of the assessee and against the Revenue.

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