Law:

Section:

Section 186 of the Income-tax Act, 1961 - Firm - Position prior to 01-04-1993 - Assessment year 1965-66 - Whether requirement of giving 14 days notice and affording a reasonable opportunity of being heard, is only to inform assessee regarding proposed can cellation of registration - Held, yes - Whether non-giving of requisite notice might affect legality of order but does not affect jurisdiction of ITO - Held, yes - Whether absence of notice or reasonable opportunity of being heard does not mean that proceedings are to be annulled and assessee is entitled to registration - Held, yes HELD From a reading of section 186(2), it is seen that before cancelling the registration of a firm, the ITO has to give a notice of not less than 14 days intimating the intention to cancel its registration and has also to afford a reasonable opportunity of being heard. The ITO does not assume the jurisdiction for cancelling the registration of a firm upon issue of a notice. The requirement of giving 14 days notice and affording reasonable opportunity of being heard is only to inform the assessee regarding the proposed cancellation of the registration. Non-giving of the requisite notice might affect the legality of the order but does not affect the jurisdiction of the ITO. Absence of notice or reasonable opportunity of being heard does not mean that the proceedings are to be annulled and the assessee is entitled to continuation of registration. At best, the proceedings may be started afresh. [Para 5] A.N. Mahajan for the Applicant. JUDGMENT 1. The Income Tax Appellate Tribunal, Allahabad has referred the following question of law under section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") for opinion to this Court :- "1. Whether on the facts and in the circumstances of the case, was the Tribunal justified in setting aside the order of the Appellate Assistant Commissioner and remanding the case after giving the requisite notice and instead annulling the order of the Income Tax Officer?" 2. Briefly stated, the facts giving rise to the present reference are as follows:- The respondent assessee is a firm and was assessed as a registered firm upto the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492