BHERURAM RATANLAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) ON an application filed under Section 256(1) of the Income-tax Act, 1961, the Tribunal has referred the following question for the opinion of this court :

(2.) THE assessee has claimed the status of a registered firm for which a declaration under Section 184(7) was filed along with the original return of income. In the original return, the income declared was Rs. 21,060. Subsequently, the assessee has filed the revised return on November 28, 1979, and in the revised return, it has declared the income of Rs. 40,625. THE admitted fact is that no books of account are maintained by the assessee. THE Assessing Officer has refused to grant registration to the firm of the assessee on the ground that there being no books of account and there being no evidence as to whether the enhanced profits were distributed amongst the partners in accordance with the declaration filed under Section 184(7) of the Act, the assessee is not entitled to continue the registration of the firm.

(3.) MR. Mathur, learned counsel for the Department, submits that when the original return has been filed, declaration under Section 184(7) has been furnished along with the original return. In the original return, the income shown was Rs. 21,060 and in the revised return, the income shown was Rs. 40,625. When the declaration of income shown was only Rs. 21,060, no further declaration was furnished though the income was shown as Rs. 40,625. Therefore, the firm is not genuine and no case for continuation of the registration is made out.