SUDARSHAN AND COMPANY Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference under section 256(1) of the Income-tax Act, 1961, hereinafter called "the Act", made at the instance of the assessee. The question of law referred is :

(2.) THE assessee-firm made an application for registration under section 185 of the Act in the assessment year 1967-68. THE Income-tax Officer rejected that application and treated the assessee as an "association of persons' for the assessment year 1967-68. On appeal by the assessee the Appellate Assistant Commissioner of Income-tax, Belgaum Range, affirmed the said order. THE Income-tax Appellate Tribunal, Bangalore Bench, further affirmed that order in I.T.A. No. 91 (Bang) of 1969-70.

(3.) IN Commissioner of INcome-tax v. A Abdul Rahim and Co. 2 the statement in Sivakasi Match Exporting Company's case 1 was reiterated. Sri. K. Srinivasan urged that in the instant case both the conditions laid down by the Supreme Court have been satisfied and, therefore, the assessee was entitled to registration.