Report No. 12
191. Application for registration.-
(1) An application for registration of a firm for the purposes of this Act may be made to the Income-tax Officer on behalf of any firm if-
(i) the partnership is evidenced by an instrument, and
(ii) the individual shares of the partners are specified in that instrument, or can be ascertained from that instrument with or without the aid of the instruments of partnership of any other connected firms
(2) Such application may, subject to the provisions of this section, be made either during the existence of the firm or after its dissolution.
(3) The application shall be made to the Income-tax Officer having jurisdiction to assess the firm, and shall be signed-
(a) by all the partners (not being minors) personally, or
(b) in the case of a dissolved firm, by all persons (not being minors) who were partners in the firm immediately before its dissolution and by the legal representative of any such partner who is deceased.
[Section 26A(2), part, read with Rule 2, second para., part]
(4) The application shall be made before the end of the previous year for the assessment year in respect of which registration is sought:
Provided that the Income-tax Officer may entertain an application made after the end of the previous year, if he is satisfied that the firm was prevented by sufficient cause from making the application before the end of the previous year.
[Section 26A(2), part, read with rule 2, second para., part]
(5) The application shall be accompanied by the original instrument evidencing the partnership, together with a copy thereof
Provided that if the Income-tax Officer is satisfied that for sufficient reason the original instrument cannot conveniently be produced, he may accept a copy of it certified in writing by all the partners (not being minors), or, where the application is made after the dissolution of the firm, by all the persons referred to in clause (b) of sub-section (3), to be a correct copy, or a certified copy of the instrument; and in such cases the application shall be accompanied by a duplicate copy of the original instrument:
Provided further that where the individual shares of the partners are not specified in the instrument of partnership, the provisions of this section shall apply also in relation to the instruments of partnership referred to in clause (ii) of sub-section (1) as they apply in relation to the instrument evidencing the partnership of the firm to be registered.
[Section 26A(2), part, read with rule 3]
(6) The application shall be made in the prescribed form and shall give the following particulars-
(i) the names and addresses of the partners of the firm during the previous year, together with their shares:
(ii) the dates of their admission to the partnership;
(iii) the interest on capital or loans payable to the partners;
(iv) the salary or commission or any other amount payable to the partners; and
(v) the manner in which the profits of the firm were divided for the latest previous year for which such division has been made and the mode of distribution, that is to say, whether the distribution was made by crediting the accounts of the partners or in any other manner, or if the profits have not been divided the reason for not dividing the profits.
[Section 26A(2), part, read with rule 3, Form 1, Schedule]
(7) Where registration is granted to any firm for any assessment year, it shall have effect for every subsequent assessment year, provided there is 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, and provided the firm furnishes, along with its return of income for the assessment year concerned, a declaration to that effect, in the prescribed form and verified in the prescribed manner.
[New] [See rule 6]
(8) Where any such change has taken place in the previous year, the firm shall apply for fresh registration for the assessment year concerned in accordance with the provisions of this section.