Whether coparcener of HUF can be regarded as benamidar of HUF and thus obliged to file Form No. 12A in terms of Explanation (b) of section 185(1)
1. Reference is invited to the Board’s Circular No. 207 [F. No. 220/20/76-IT (A-II)], dated 24-9-1976 [Clarification 2] wherein it was explained that the karta of the Hindu undivided family cannot be regarded as a benamidar of the Hindu undivided family within the meaning of the Explanation to section 185(1) and as such there is no obligation to file Form No. 12A in such cases.
2. The Board have examined the question whether the provisions of clause (b) of Explanation to section 185(1) will apply to a case where a coparcener other than a karta of Hindu undivided family is a partner in a firm on behalf of his Hindu undivided family. The Board is of a view that a coparcener of a Hindu undivided family cannot be regarded as a benamidar of Hindu undivided family and as such there is no obligation to file Form No. 12A in such cases.
Circular: No. 224 [F. No. 220/8/77-IT(A-II)], dated 22-6-1977
