COMMISSIONER OF INCOME TAX Vs. ASHOKA INVESTMENT CO

JUDGEMENT

(1.) THIS is an application filed by the CIT, Delhi-I, New Delhi, Under S. 256(2) of the IT Act, 1961 praying that the Tribunal be required to state the case and refer the following question stated to arise out of the order the said Tribunal, dt. 3rd March, 1975, In IT appeal No. 2483 of 1973-74 relating to the asst. yr. 1970-71:

(2.) THE assessee firm, Ashok Investment Co., Delhi was constituted under a deed of partnership, dt 1st Sept., 1964, consisting of two partners, Shri K.L. Rajgarhia and Smt. Shanti Devi Kedia. Three minors were also admitted to the benefits of the partnership. Shri K.L. Rajgarhia retired on 31st March, 1967. The firm was reconstituted w.e.f. 1st April, 1968 under a new deed of partnership, dt. 12th March, 1969. The new consisted of Smt. Shanti Devi Kedia and Shri Anand Kumar, who were the major partners, and the three minors admitted to the benefits of the partnership.

(3.) AS regards the asst. yr. 1970-71, the ITO had refused to allow continuation of registration. But on appeal, the AAC allowed the continuation for the same reasons for which he had granted registration for the asst. yr. 1968-69 & 1969-70. The Revenue again preferred an appeal against that order to the Tribunal and the Tribunal by its order dt. 3rd March, 1975, dismissed the appeal holding that the firm was genuine and Smt. Shanti Devi Kedia and Shri Anand Kumar were not the Benamidars of Shri K.L. Rajgarhia. The CIT thereupon filed an application under S. 256(1) of the Income-tax Act before the Tribunal praying that the two question mentioned above be referred to this Court. The Tribunal, however, dismissed the application holding that no question of law arises out of the impugned order of the Tribunal. Hence the present application under S. 256(1) of the Income tax Act.