Status of entity

My friend had taken iec as partnership and added me as partner and got the partnership pan card, in year 2010 while me and him was doing jobs respectively. Nothing was done till 2012 by him except for job. In the year 2012 he went to bank to open account and it was done as properitor and ssi registration was also done as properitor as he was doing it all alone and no bank was willing to give business loan to him and only one bank agreed and it did it as proprietor. He started export using the given iec without knowing the underlying difference. He filed returns as proprietor since then and i filed my returns in individual capacity. No partnership return is filed since he was doing the business all alone and not aware of this. He came to know of this conflict issue in the year 2017 and since then he is very restless. He has filed returns as properitor while i have done so as employee in different company. Kindly suggest the solution as me and him are law abiding citizen and this was not done intentionally but rather lack of knowledge and not knowing the rules of formation lead to this problem. We would like to receive guidance and help on this issue as we dont know what to do and we dont see any solution to this problem.