1971 (11) TMI 27

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.... of any partner the partnership was not to dissolve but was to continue with the heir of the deceased partner taking his place. The registration of the firm was continued year after year by the income-tax department till the assessment year 1964-65. The accounting year which corresponded to the assessment year 1964-65 was October 29, 1962, to November 15, 1963. Aswarthanarayana, one of the partners, died on October 15, 1963, and he was succeeded in the partnership by his widow, Mangamani. On September 26, 1964, the firm, instead of applying for fresh registration as required by section 184(8) when there was a change in the constitution of the firm, applied in Form No. 12, for continuation of registration under section 184(7) as if there was....

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...., for the assessment year 1964-65 was maintainable in terms of the provisions of section 187(1) of the Income-tax Act, 1961 ? " Section 184 deals with application for registration, section 185 with procedure on receipt of application and section 186 with cancellation of registration. Section 184(4) states: " The application shall be made before the end of the previous year for the assessment year in respect of which registration is sought." Section 184(7) provides that where registration is granted to any firm for any assessment year, it shall have effect for every subsequent assessment year. Section 184(8) provides that where there is any change in the constitution of the firm, the firm shall apply for fresh registration for the a....

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.... income to be computed ? How are the losses and incomes to be set off ? Who is to pay the tax and in what proportion ? What is the accounting year of the registered " face " of the firm and that of the unregistered " face " of the firm ? The assessee itself did not divide the previous year into two periods and make up its accounts to show the profits or losses separately for the two periods. The income returned by the firm cannot be apportioned between the two periods when accounts are not so made up. Sri T. Ananta Babu urged that there was no change in the constitution of the firm. All that had happened was that one partner had died and his heir had taken his place without the firm being dissolved, as provided by the terms of the deed o....