Income tax returns for non-functioning partnership firm

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 January 2014 Dear Experts,
In a Partnership Firm consisting 2 partners who are senior citizens aged about 67 years old.
The partnership firm deals with money lending business but for the past 5 years it transacted nothing and simply keep quiet since their age factors not cooperating for anything and now they are mainly concentrates for recovery of arrears as such they are conducting civil cases which is pending in courts.
Under these circumstances, whether it is necessary to file Income Tax Returns for this Partnership Firm since for the past 5 years they have not transacted any business and simply kept under non-functioning status.
Kindly advice in this regard.
Thanking you in advance.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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31 January 2014 yes it is necessary. please refer section 139(1). Also recently in Jayalalitha case, prosecution has been initiated because she didn't file her own returns and returns of the firm where she was a partner.

http://www.thehindu.com/news/national/tamil-nadu/it-case-sc-orders-prosecution-of-jayalalithaa/article5634073.ece

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