Home › Tax Laws › Badshah Enterprises .v. AO (2018) 169 DTR 2 (Bom.)( HC)

Badshah Enterprises .v. AO (2018) 169 DTR 2 (Bom.)( HC)

S. 184 : Firm–Registration-Firm-Assessment as a firm-Failure to file certified copy of partnership deed along with return – There is no change either in the constitution or in the shares of the partners–S. 184(3) allows the status/benefit of being assessed as a partnership firm if in an earlier assessment it was so assessed–Hence, the firm would continue to be assessed as a partnership firm in the subject assessment year despite not filing the certified partnership deed with the return of income filed.

Allowing Assessee’s appeal the High Court held that:

  1. Execution of a fresh instrument of partnership providing for payment of salary and/or interest to the partners does not bring about a change in share of profits of the partners as indicated in the partnership deed;
  2. As the assessee-firm was assessed as a partnership firm prior to AY 1993-94 and there has been no change in the share of the partners, it would continue to be assessed as a partnership firm in the relevant year ie AY 1993-94 as the requirement of filing certified copy of the partnership deed along with the return of income is applicable w.e.f April 1, 1993 and only applied to firms which sought to be assessed as partnership firm under the Act for the first time after April 1, 1993. (AY. 1993-1994)