Renewal of partnership registration cannot be refused by reopening a prior family-disruption order when the firm's constitution is unchanged.

Where a prior statutory order had already recognised disruption of a Hindu undivided family, the Income Tax Officer could not reopen that question by fresh enquiry or treat the partnership as a mere camouflage. The renewal rule required registration to be renewed from year to year unless the firm's constitution had changed after the last certificate, and no such change was shown. The refusal to renew registration was therefore not justified, and the issue was answered in favour of the assessee.

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Issues: Whether, after an earlier order recognising disruption of the Hindu undivided family, the Income Tax Officer could refuse renewal of registration of the partnership by treating the firm as a mere subterfuge and by embarking upon a fresh enquiry under the partition provision.

Analysis: An order already made on enquiry had recorded that the family had separated in status, even though there was no partition by metes and bounds of all properties. That order attracted the statutory consequence that the family was to be treated as undivided only where no such order existed. The renewal rule required the certificate to be renewed from year to year unless the constitution of the firm had altered since the last certificate. On the record, no change in constitution after the last renewal was shown. The Income Tax Officer therefore had no authority to disregard the earlier order and reopen the question of disruption or to refuse renewal on the footing that the partnership was a camouflage.

Conclusion: The refusal to renew registration was not justified. The question was answered in the negative, in favour of the assessee.

Ratio Decidendi: Where a prior statutory order has recognised disruption of a Hindu family and the constitution of the registered firm remains unchanged, the assessing authority cannot reopen the question by a fresh enquiry and must renew registration in accordance with the governing rule.

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