Law:

Section:

Section 186 of the Income-tax Act, 1961 [Corresponding to section 23(4) of the Income-tax Act, 1961] - Firm - Position prior to 1-4-1993 - Assessment year 1958-59 - ITO refused to renew registration of assessee firm under section 26A of 1922 Act exercising his discretion under section 23(4) for its failure to produce requisitioned records necessitating completion of best assessment - Whether power of ITO to cancel registration under section 26A of 1922 Act can be exercised in case he comes to conclusion that firm was non est and registration was obtained on account of misrepresentation or deception - Held, yes - Whether instant case was really a case of refusal of registration under section 23(4) of 1922 Act for not complying with notice under section 22(4) of 1922 Act and non-production of seized books of account - Held yes - Whether therefore, ITO was justified in refusing renewal of registration under section 26A of 1922 Act, while exercising his discretion under section 23(4) of 1922 Act - Held, yes FACTS The assessee was a partnership firm, which derived income from business in grains. The partnership was registered under section 26A of the Act in the years previous to the year 1958-59. It had applied for the renewal of the registration as a partnership firm in time for the year 1958-59 also. At the time of the inspection of the books of account by the ITO, it transpired that the sales tax authorities had seized certain books of account of the firm from the possession of the firm and, accordingly, a notice under section 22(4) of the Act, calling upon the assessee to produce the seized books of account, was duly served, which was not complied with. Thereafter, summonses were issued under section 37 of the Act, in pursuance of which 'B', a partner of the firm, appeared and his statements were taken wherein he stated that the seized books were burnt. The ITO did not rely on the said statement of 'B' and as the seized books were not produced for inspection and scrutiny, best assessment under section 23(4) of the Act was made by the ITO and he also refused renewal of the registration of the firm. The assessee filed an appeal before the AAC, who held that since…

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