Firm registration completes only on entry in the register, making a tax registration application filed earlier out of time.

Registration of a firm under the Indian Partnership Act is completed only when the Registrar records the entry in the register of firms and files the statement under section 59; mere presentation of the registration statement and fee under section 58 is not enough. On that basis, Rule 2(b) of the income-tax registration rules applies only to a firm already registered under the Partnership Act, so an application for registration under section 26A filed before completion of firm registration was out of time. The legislative materials relied upon could not displace the plain statutory scheme, and the referred question was answered against the assessee.

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Issues: Whether an application for registration of a firm under section 26A of the Indian Income-tax Act, 1922 was filed within time when the firm had only presented a statement for registration under section 58 of the Indian Partnership Act, 1932 but the entry in the register of firms had not yet been made under section 59 of that Act.

Analysis: The scheme of sections 58 and 59 of the Indian Partnership Act, 1932 shows that registration of a firm is completed only when the Registrar records the entry in the register of firms and files the statement. The mere presentation of the statement and fee does not amount to registration. Rule 2(b) of the Income-tax registration rules therefore applies only where the firm is already registered under the Partnership Act, and that condition was not satisfied when the income-tax application was filed. The Court also held that the legislative materials relied upon could not override the plain statutory scheme.

Conclusion: The application under section 26A was out of time and the question referred had to be answered in the affirmative and against the assessee.

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