Law:

Section:

Section 263, read with section 184 of the Income-tax Act, 1961 [Corresponding to section 33B, read with section 26A of the Indian Income-tax Act, 1922] - Revision - Of orders prejudicial to interest of revenue - Assessment year 1944-45 - Whether Commissioner had no jurisdiction under section 33B of 1922 Act to revise order made by ITO relating to assessment year 1944-45 as section 33B of 1922 Act was made retrospective only from assessment year 1948-49 - Held, yes FACTS The assessee-firm filed an application for registration for the assessment year 1944-45 which was allowed by the ITO. However, the Commissioner, in exercise of the powers conferred upon him by section 33B of 1922 Act, set aside the order on the ground that there was no genuine firm in existence for the relevant assessment year. On appeal, the Tribunal affirmed the order of the Commissioner. On reference : HELD It is settled law that the assessment for any year is to be made in accordance with the law in force on the date the Indian Finance Act for that year comes into force. Under the Act assessment is made in the case of registered firms on the share income of the individual partners and not on the income of the firm as such. Section 26A of 1922 Act and the rules framed thereunder provide for registration of a firm and the order passed by the ITO is appealable under section 30 of 1922 Act at the instance of the assessee and not at the instance of the Commissioner. The registration is operative for that assessment year only. If, however, the bogus nature of the firm comes to light after the firm is registered, the ITO has the power under rule 6B to cancel the certificate of registration. That power was not exercised in the instant case by the ITO. Section 33B was added by section 7 of the Income-tax and Business Profits Tax (Amendment) Act of 1948. The Act was made retrospective only to the extent of its applicability to the assessment year 1948-49. Therefore, the Commissioner had no jurisdiction under Section 33B of 1922 Act to revise the order made by the ITO relating to the assessment year 1944-45. Note : The case was decided in favour of the assessee. CASES REFERRED TO Maharaja of Prthapuram…

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