Report No. 12
190. Assessment of unregistered firms.-
in the case of an unregistered firm, the Income-tax Officer-
(a) may determine the tax payable by the firm itself on the basis of the total income of the firm; or
(b) if, in his opinion, the aggregate amount of the tax payable by the partners if the firm were treated as a registered firm would be greater than the aggregate amount of the tax which would be payable by the firm under clause (a) and the tax which would be payable by the partners individually, may proceed to make the assessment under section 189(1)(ii) [23(5)(a)(ii)] as if the firm were a registered firm; and where the procedure specified in this clause is applied to any unregistered firm the provisions of section 189(2) and 189(3) [1st and 2nd provisos to section 23(5)(a)] shall apply thereto as they apply in the case of a registered firm.