Partnership

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 August 2015 Respected Sir/Madam,
There is a partnership firm constituted within fy 2014-15 for manufacturing business and during fy 2014-15 they only purchased a machine of 6 lacs for production purpose and raw material around 2.5 lacs. No manufacturing activity or sale was done in fy 2014-15.

In fy 2015-16, some difference has arised between partners and they have decided to close the business wef 15/08/2015. In the first quarter of fy 2015-16 they have sold production machinery in Rs. 3 lacs (which was purchased in 6 lacs) and manufactured goods in Rs. 3.5 lacs made from raw material purchased in fy 2014-15.

Now please advise on following points -

1. Whether they have to surrender Firm's PAN. If yes then what's the procedure.

2. Whether firm has to file IT return for the fy. 2014-15 or not as no production or sale activity done in fy 2014-15.

Hoping a valuable advice from side ...

CA Jitendra Daraji

CA Jitendra Daraji (Expert)
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12 August 2015 Dear friend
1. you need to visit your local Income Tax Assessing Officer with a request letter to cancel/ surrender your PAN along with dissolution deed of firm.
2. You need to file your Fy 2014-15
IT return as partnership firm is mandatory require to file income tax return.