BENI PRASAD SIDHGOPAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE assessee is a firm constituted under a deed of partnership dated 14th November, 1955. It consisted of nineteen partners. It was granted registration under Section 26A of the Indian I.T. Act, 1922, for the assessment year 1956 -57. The registration was renewed thereafter up to the year 1959 -60. Sri Narottam Das, one of the partners, died on 20th December, 1958, relevant for the assessment year 1960 -61. For this year, the accounting period ended on 7th July, 1959.

(2.) THE firm continued the business. It took the legal representatives of the deceased partner as partners of the firm. The firm applied for renewal of registration for the assessment year 1960 -61 on 29th June, 1960. The ITO refused renewal. He held that on the death of a partner a change occurred in the constitution of the firm. No fresh deed of partnership having been executed the firm was not entitled to renewal of registration.

(3.) THE Tribunal had relied upon the decision of this court in C1T v. Wajid AH Abid Ali [1972] UPTC 532. When the reference came up before a Bench it felt that this decision needed reconsideration. The case was hence referred to a Full Bench.