Law:

Section:

Section 186 of the Income-tax Act, 1961 – Firm – Position prior to 1-4-1993 – Assessment year 1964-65 – Registration granted to petitioner-firm was sought to be cancelled on ground that one of partners shown in partnership deed was non–existence person, ITO granted petitioner a week time to produce aforesaid partner in person - Petitioner however, failed to produce any evidence with regard to existence of partner – Further whenever attempts were made by revenue to contact said non-existent person that attempts were always failed – As such registration granted to petitioner was cancelled – Whether, on facts, it could not be said that no reasonable opportunity had been given to petitioner – Held, yes – Whether, therefore, order cancelling registration was justified – Held, yes FACTS For the assessment year 1964-65, the assessee-firm filed an application for renewal of the registration and the same was granted by the ITO while passing assessment order. Thereafter a notice was issued to the assessee stating that after enquiry it was gathered that there was no genuine firm in existence during the above-mentioned assessment years as one of the partners, ‘N', was found to be a non-existing person. The assessee submitted that it was not correct to say that ‘N' was a non-existent person. He had duly appeared before your predecessor on earlier occasions. The ITO, however, issued an order canceling the registration of the assessee-firm. On writ: HELD What is reasonable opportunity depends upon the facts and circumstances of a case. In the instant case the ITO gave opportunity of seven days' time. Thereafter, the assessee wrote on the 22-3-1973. But the assessee did not produce any evidence even up to the 30-3-1973, when the impugned order was passed. The petitioner had not stated in the petition what evidence or material the petitioner would have produced if further time was given nor had the petitioner stated what other evidence the petitioner had in possession to rebut the tentative conclusion of the ITO. The petitioner had also not stated why he wanted longer time. In the premises, it could not be said that no reasonable opportunity had been given to the petitioner.…

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