Law:

Section:

Sections 184 and 185 of the income-tax act, 1961-Firm-Registration-Continuation of registration-Assessee's failure to prove filing application for registration within relevant accounting year-ITO refused registration treating status as unregistered firm-AAC treated ITO's order under section 185(1)(b) and remanded back to ITO for fresh decision after examining question of genuineness of firm-Revenue challenged legality of AAC's order as ITO's order was under section 184(4) and no aepeal lay-Tribunal holding that separate appeal maintainable and competent as ITO decided only "status" as part of assessment proceedings-Whether tribunal erred in treating ITO's order in exercise of his assessment jurisdiction under section 143(3)-Held, yes-Whether assessee was denied an adequate opportunity to represent its case on the basis that order refusing registration was part of assessment proceedings under section 143(3)-Held, no Facts The assessee-firm consisted of three partners up to 30-9-1968. On and from 1-10-1968, one of them retired and the three new partners joined the assessee-firm thereby bringing a change in its constitution during the accounting year relevant for the assessment year 1969-70. A change in the constitution of the assessee-firm occurred in the accounting year ending 31-3-1969. The assessee claimed to have submitted application for fresh registration on 31-12-1968 but the same had not been received by the ITO. On 13-10-1969, the assessee furnished to the ITO another copy of the said application. The ITO found on investigation that the assessee had not made any such application. He accordingly refused registration by an order purporting to be under section 185. On appeal, the AAC found that the assessee had, on 13-10-1969, filed an application for registration and that the ITO had entertained that application, though it was made after the end of the previous year. He, therefore, opined that the ITO's order was one under section 185(1)(b ) and held that such an order could be passed only if the ITO was satisfied that there was no genuine firm in existence. Since the ITO had not investigated this aspect of the case, he set aside the ITO's order and…

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