Partnership firm registration upheld where earlier refusal was corrected and Form No. 11 was accepted as sufficient.

An assessee-firm was found entitled to registration for the assessment year because the earlier refusal had already been corrected in appeal, and the subsequent grant of registration for the immediately following year supported continuity of the same status. Filing Form No. 11 instead of Form No. 12 was not treated as fatal, since the continued state of affairs meant the form could contain the same particulars in greater detail. The partners' share income had also been assessed, and the earlier judicial view supporting registration in such circumstances was applied. The tax authority's refusal was therefore held unsustainable.

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Issues: Whether the assessee-firm was entitled to registration for the assessment year in question despite the earlier refusal of registration and the filing of Form No. 11 instead of Form No. 12.

Analysis: The refusal of registration was based mainly on the fact that registration had been declined in the earlier year, but that position had subsequently been corrected by the appellate authority. The filing of Form No. 11 was not treated as an objection, since where the state of affairs continued unchanged, Form No. 11 could contain the same particulars as Form No. 12 in greater detail. Registration had also been granted for the immediately succeeding year, indicating that the firm was entitled to the benefit in the year under appeal. The partners' share income had been assessed, and the earlier judicial view supporting such registration was found applicable.

Conclusion: The assessee-firm was entitled to registration, and the refusal by the tax authority was not sustainable.

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