Law:

Section:

Section 186 read with section 184 of the Income-tax Act 1961 - Firm - Position prior to 1-4-1993 - Assessment year 1974-75 - Whether provision of section 184(7) does not require any specific order to be made by Assessing Officer for continuance of registration, if firm satisfies condition laid down in proviso thereunder - Held, yes - Whether where ITO only issued a notice to assessee-firm giving 14 days' time intimating his intention to cancel registration without affording an opportunity of being heard, cancellation of registration was illegal and without jurisdiction - Held, yes FACTS The assessee was a firm which had been registered up to the assessment year 1973-74. The assessee filed a declaration in Form No. 12 and that declaration was within the prescribed time. On assessee's failure to file return dispite issue of notices, the ITO made an assessment ex-parte under section 144 and cancelled the registration of the firm under section 186(2). Before doing so the ITO had issued a notice dated 25-2-1975, calling upon the assessee to show cause why the registration granted should not be cancelled but the did not intimate the date of hearing which was required to be given to the assessee under section 186(2). On appeal, the AAC held that, having regard to the circumstances of the case, the cancellation of the registration was arbitrary and ITO should have exercised the direction in favour of the assessee and should not have cancelled the registration. He, accordingly, directed the ITO to grant registration to the assessee-firm. On appeal by the revenue, the Tribunal came to the conclusion that the exercise of discretion by the ITO to cancel the registration was proper and justified. On reference : HELD Sub-section (7) of section 184 does not require any specific order to be made by the ITO for continuance of the registration. If the assessee satisfied the two requirements under the proviso thereunder, the earlier registration proprio vigore continues to operate for the subsequent year and the ITO must assess the firm as a registered firm. A specific order may be necessary to discontinue the effect of registration and not to continue the effect of registration.…

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