Firm registration continues without a fresh partnership deed under the Income-tax Act, 1961

Continuation of firm registration under section 184(7) of the Income-tax Act, 1961 does not depend on a fresh written partnership deed being in force for the relevant assessment years. Once registration is granted, it continues for subsequent years if the statutory declaration is furnished and there is no change in the firm's constitution or partners' shares as evidenced by the original instrument on which registration was based. The earlier regime under section 26A of the 1922 Act required yearly applications and was therefore not applicable to continuation under the 1961 Act.

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Issues: Whether continuation of registration of a firm under section 184(7) of the Income-tax Act, 1961 required the existence of a written partnership deed in force during the relevant subsequent assessment years.

Analysis: Under the 1961 Act, registration once granted continues for every subsequent assessment year if the statutory declaration is furnished and there is no change in the constitution of the firm or the shares of the partners as evidenced by the instrument on the basis of which registration was originally granted. The provision governing continuation does not require the current subsistence of a fresh or operative deed of partnership. The position under section 26A of the 1922 Act was different because yearly applications were required under that regime, and authorities under that Act were therefore not applicable to continuation under the 1961 Act.

Conclusion: Continuation of registration did not depend on a written partnership deed being in existence during the relevant assessment years, and the assessee was entitled to continuation of registration.

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