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of <h1>ITAT directs reassessment as AOP for non-compliance with partnership deed filing.</h1> <h3>Dawood Sons. Versus Assistant Commissioner Of Income-Tax.</h3> The ITAT ruled in favor of the assessee, directing the assessing authority to revise the assessment and treat the assessee as an AOP instead of a firm for ... Assessability Of AOP Issues involved: Assessment of assessee as a 'firm' u/s 143(3) of the IT Act, 1961 without filing revised partnership deed, applicability of sections 184 and 185 for assessment status determination.Summary:The appeal was filed by the assessee against the order of the CIT(A)-IX at Chennai for the assessment year 2003-04, where the assessee was assessed as a 'firm' without filing a revised partnership deed along with the return of income. The AO held that the non-filing of the revised partnership deed was intentional to benefit from lower taxes applicable to AOP. The CIT(A) upheld this decision based on the return being filed in the status of a 'firm,' leading to the appeal before the ITAT.The ITAT considered the provisions of sections 184 and 185 of the IT Act, which govern the assessment of firms. Section 184 mandates that a firm must file a certified copy of the partnership deed to be assessed as a firm, especially in cases of reconstitution. Failure to comply leads to assessment as an AOP u/s 185. The ITAT emphasized that the conditions under sections 184 and 185 are mandatory for determining the assessment status of a firm.The ITAT clarified that if the mandatory conditions of section 184 are not met, the assessee cannot be assessed as a firm, and section 185 automatically applies for assessment as an AOP. The intention behind not filing the partnership deed is irrelevant; compliance with section 184 is crucial for firm assessment. The assessing authority cannot impose firm status based on reasons like deliberate non-filing of documents.In this case, the ITAT found that the lower authorities' decision to assess the assessee as a firm was not legally sustainable. Therefore, the ITAT directed the assessing authority to revise the assessment and treat the assessee as an AOP, as per the provisions of sections 184 and 185. Consequently, the appeal filed by the assessee was allowed.
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