COMMISSIONER OF INCOME TAX Vs. TOOLSIDASS JEWRAJ

JUDGEMENT

(1.) This reference at the instance of the Revenue relates to the assessment year 1982-83. The question of law which has been referred to us is as follows :

(2.) The facts are in a narrow compass. In the assessment year 1982-83, the assessee-firm comprised six partners. The firm was treated as a registered firm under Section 185(1) of the Act. For claiming benefit of continuation of registration, the assessee-firm filed a declaration in Form No. 12 on July 30, 1982. The said declaration was not signed by one of the partners, namely, Lakshmidass Toolsidass. The Income-tax Officer granted continuation of registration to the firm. The Commissioner of Income-tax, however, set aside the said order under Section 263 of the Act as, according to him the declaration in Form No. 12 submitted by the assessee was defective. Pursuant to the said direction, the Income-tax Officer completed the fresh assessment refusing to allow continuation of registration to the assessee-firm. He held that the declaration in Form No. 12 filed on July 30, 1982, was defective as it was not signed by one of the partners, viz., Lakshmidass Toolsidass. On appeal, the Commissioner of Income-tax (Appeals) upheld the action of the Income-tax Officer in refusing to allow continuation of registration to the assessee-firm. The Tribunal, however, was of the view that the firm was a genuine one and that the requirements of Rule 24 and Rule 22(5) of the Income-tax Rules were satisfied. He, therefore, directed the Income-tax Officer to continue registration under Section 184(7).

(3.) Rule 24 provides that the declaration to be furnished under Sub-section (7) of Section 184 shall be in Form No. 12 and shall be verified in the manner indicated therein and shall be signed by the persons concerned in accordance with Sub-rule (5) of Rule 22. Sub-rule (5) of Rule 22 provides that the application shall be signed personally by all the partners in the firm as constituted on the date of application. It is only in the case of any partner who is absent from India or a lunatic or an idiot that the application may be signed by a person duly authorised in this behalf or, as the case may be, by a person entitled under the law to represent him. Form No. 12 also indicates that the declaration for continuation of registration under Section 184(7) should be signed by the partners personally.