68. Registration of firms:-

(1)   An application may be made to the Deputy Commissioner on behalf of a firm for registration of the firm for the purposes of this Ordinance.

(2)   No application shall be made under sub-section (1) unless, before the end of the income year relevant to the year for which assessment is to be made,-

(a)    the firm had been constituted by an instrument of partnership;

(b)    the said instrument specifies, among other things, the shares of the partners; and

(c)    the said firm had been registered under the Partnership Act, 1932 (IX of 1932), or an application for registration under the said Act had been made.

(3)   An application under sub-section (1) shall be in such form, be accompanied by such documents, be verified in such manner and be made on or before such date as may be prescribed.

(4)   Where the Deputy Commissioner, after making such enquiry or requiring the firm to furnish such particulars, documents or evidence as he may think fit, is satisfied that the requirements of sub-sections (2) and (3) have been fulfilled and that there is, or was, a genuine firm in existence in the relevant income year constituted as shown in the instrument of partnership, he may, by an order in writing, made within three months of the date on which the return of total income was filed under section 55 or six months of the end of the income year, whichever is the earlier, register the firm for the purposes of this Ordinance and, subject to the provisions of sub-section (5), such firm shall be treated as a registered firm for the income year for which it is first registered and for all subsequent income years for so long as there is no change in the constitution of the firm; and if he is not so satisfied, he may, by an order in writing made within the aforesaid period, refuse to register the firm:

Provided that, where no such order is made within the aforesaid period, the firm shall be treated as a registered firm and all the provisions of this Ordinance shall, so far as may be, apply as they apply in the case of a firm registered under this sub-section.

(5)   If, at any time after a firm has been registered or treated as a registered firm under sub-section (4) for any income year, the Deputy Commissioner has reason to believe that-

(a)    there was no genuine firm in existence in such income year constituted as shown in the instrument of partnership; or

(b)    the requirements of sub-sections (2) and (3) had not been fulfilled in respect of the said income year,

he may cancel the registration after giving a reasonable opportunity to the firm of being heard.