MADIVALAPPA AND SONS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference under section 256(1) of the Income-tax Act, 1961, hereinafter called "the Act." The question of law referred to this court reads :

(2.) IN our opinion, the question of law that arises out of the order of the Tribunal is :

(3.) THE Act of 1961 has made a change in regard to the registration of firms for subsequent years. Under the proviso to sub-section (7) of section 184, the registration granted to a firm for any assessment year enures for subsequent years provided the firm furnishes along with its return of income for the assessment year concerned a declaration in the prescribed form and verified in the prescribed manner to the effect that there was no change in the constitution of the firm or the shares of the partners as evidenced by the instrument of partnership on the basis of which the registration was granted. THE undisputed facts are that the assessee-firm did not file its return of income within the time allowed by the Income-tax Officer. THEre is no discretion vested in the Income-tax Officer to grant the benefit of registration to the firm when the assessee firm does not satisfy the two conditions laid down by the proviso to sub section (7) of section 184 of the Act. In our opinion, the Tribunal was right in holding that the registration granted to the firm for the assessment year 1962-63 does not enure for the subsequent assessment year since the assessee-firm has not filed its return of income.