Continuation of registration of a firm under Section 184(7) of the Income Tax Act is possible only when there has been no change in the constitution of the firm or the shares of the partners during the previous year, or when the firm has been dissolved.

N.D. Ojha, J.

1. The question as to whether a firm is entitled to continuation of registration even in a case where it does not stand dissolved or continuation of registration is possible only if the firm stands dissolved was referred by a Division Bench of this court to a Full Bench by its order dated August 14, 1987, It is thus that the aforesaid question has come up for consideration before us.

2. The Division Bench, in referring the aforesaid question to a Full Bench, was of the view that there seemed to be an apparent conflict on the aforesaid question in the decisions of the two Division Benches of this court, one in the case of CIT v. Gopi Talkies, Raigarh [1987] 163 ITR 568(MP) and the other in the case of Ganesh Rice Mills v. CIT [1981] 132 ITR 257 (MP).

3. In the case of Gopi Talkies, Raigarh [1987] 163 ITR 568 (MP), the assessee claimed the status as a registered firm in the return filed on June 30, 1975, for the assessment year 1975-76, for which the accounting period ended on November 13, 1974. During this period, one of the partners, namely, Gopiram, died on October 2, 1974. The question which arose for consideration in that case was as to whether the firm was entitled to continuation of registration till October 2, 1974, when Gopiram died. The question was answered by saying that the Tribunal was justified in directing the Income Tax Officer to allow continuation of registration till the death of the deceased partner, Gopiram.

4. In the case of Ganesh Rice Mills [1981] 132 ITR 257 (MP), however, it was held that Sub-section (7) of Section 184 of the Income Tax Act, 1961 (hereinafter referred to as "the Act"), read with Form No. 12, contemplated continuation of registration for part of a year "only when the firm stood dissolved and there was no question of continuation of registration for part of the year when the firm continued after a change in its constitution which was not evidenced by the instrument of partnership. In this case, one partner had retired and it was held that since there had been only a change in the constitution of the firm and not dissolution thereof the firm was not entitled to continuation of registration for a part of the year. The term "person", according to the definition as contained in Section 2(31) of the Act, inter alia, includes a firm also. Consequently, when Section 4(1) of the Act which deals with charge of Income Tax, uses the words "every person", it includes a firm also. Section 182 of the Act deals with assessment of registered firms, whereas Section 183 thereof deals with assessment of unregistered firms. Section 184 of the Act deals with application for registration of a firm for the purposes of the Act and Section 185 prescribes the procedure to be followed on receipt of such an application. Section 186 deals with cancellation of registration with which we are not concerned in the instant case. Section 187 deals with change in the constitution of a firm, whereas Section 188 deals with succession of one firm by another firm.

5. Section 184 of the Act is the main section which is relevant for answering the question referred to us and for the sake of convenience, it is being reproduced hereunder :

"184. Application for registration.--(1) An application for registration of a firm for the purposes of this Act may be made to the Income-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.

(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 o