A minor partner attaining majority does not result in a change in the constitution of a partnership firm for the purpose of continuation of registration under Sec.184 of the Income-tax Act, 1961.

D.K.Sen, J.

1. The material facts and the proceedings leading up to this reference are, inter alia, that Vijoy Cloth Stores, Ranchi, the assessee, is a partnership firm constituted under a deed of partnership dated November 17, 1969. The assessee-firm, at its inception, consisted of two major partners, namely, Jag Narain Prasad and Smt. Kamla Devi Jaiswal, and a minor, named, Rajendra Prasad Jaiswal, was also admitted to the benefits of the partnership. The said deed provided, inter alia, that the profits of the said partnership would be divided amongst the two major partners and the said minor as one-third share each and the losses of the said partnership would be borne by the two major partners in equal shares. It was further provided that unless the minor declined to continue to be a partner in the said firm within six months from the date of his attaining majority, he would automatically be treated as a partner therein and the profit and loss of the partnership would be divided among the three partners in equal shares.

2. The said partnership was duly registered under Sec.184 of the Income-tax Act, 1961, and continued to be so registered till the assessment year involved, namely, assessment year 1975-76, the accounting year ending on November 11, 1974.

3. The said minor, Rajendra Prasad Jaiswal, attained majority on August 11, 1974.

4. On November 20, 1974, a fresh deed of partnership was executed by and amongst the said Jag Narain Prasad, Kamla Devi Jaiswal and Rajendra Prasad Jaiswal, where it was, inter alia, recorded that the said Rajendra Prasad had exercised his option to become a partner in the assessee firm with effect from August 11, 1974, and that the said partnership business commenced with effect from August 11, 1974. The shares of the three partners in the profits and losses of the assessee continued to be one-third each.

5. On June 30, 1975, a declaration in an obsolete Form No. 12, which had since been revised, was filed on behalf of the assessee under Sec.184 of the said Act.

6. The Income-tax Officer took the view that as the minor who had been admitted to the benefits of partnership had attained majority during the previous year relevant to the said assessment year 1975-76, there had been a change in the constitution of the firm, and, therefore, the assessee was required to execute a fresh deed of partnership recording such change and to file a fresh application for registration in Form No. 11A. By his letter dated December 22, 1975, the Income-tax Officer called upon the assessee to file a declaration in proper form, with the fresh deed of partnership by January 6, 1976.

7. In compliance with the aforesaid, the assessee filed a fresh declaration in revised Form No. 12 on January 6, 1976. This declaration form was signed by one of the partners, Jag Narain Prasad, for himself and also on behalf of the other original partner, Kamla Devi Jaiswal.

8. It was contended before the Income-tax Officer on behalf of the assessee that filing of a declaration in the obsolete form should be treated as a defect and now that the said defect has been removed by filing a declaration in the new form, the same should be treated as valid.

9. The Income-tax Officer did not accept the contentions of the assessee. He held that the declaration should have been filed in the correct Form No. 12 by June 30, 1975. The assessee had committed delay in filing its declaration in the correct Form No. 12 by over six months without any reasonable cause and, therefore, such delay could not be condoned by filing a declaration in the correct form out of time.

10. The Income-tax Officer held further that even the declaration filed in the correct Form No. 12 had not been signed by Kamla Devi Jaiswal, one of the partners, who, it was stated on behalf of the assessee, was out of India from November 11, 1974, and that the said form had been signed on behalf of the said Kamla Devi Jaiswal by the said Jag Narain Prasad. The Income-tax Officer