Treatment of unregistered firm as registered under section 183(b) results in both firm and partners being taxed. Section 183(b) authorises an assessing officer to treat an unregistered firm as registered where the officer considers the aggregate tax payable by the firm and its partners as registered exceeds the tax payable if the firm were unregistered; after amendment the legal effect is that registration under this provision does not exempt the firm from tax and both firm and partners will be liable, and officers must examine applicability and perform this comparison before finalising assessments.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Treatment of unregistered firm as registered under section 183(b) results in both firm and partners being taxed.
Section 183(b) authorises an assessing officer to treat an unregistered firm as registered where the officer considers the aggregate tax payable by the firm and its partners as registered exceeds the tax payable if the firm were unregistered; after amendment the legal effect is that registration under this provision does not exempt the firm from tax and both firm and partners will be liable, and officers must examine applicability and perform this comparison before finalising assessments.
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