OUSEPH MATHEW AND COMPANY Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THE petitioner is a partnership firm. It was assessed to income-tax for the first time for the assessment year 1974-75 granting registration to it under Section 185 of the Income-tax Act by order dated March 6, 1975. Subsequently, assessments were completed for the years 1975-76, 1976-77 and 1977-78 and the firm was allowed continuation of registration up to the assessment year 1980-81. For the purpose of considering the issue that is involved in this original petition, it is not necessary to mention the entire factual details. Suffice it to say, that the petitioner filed return for 1978-79 and the assessment for the said year was pending. At that stage, the petitioner filed a petition before the Settlement Commission to have the case settled in terms of Section 245C of the Income-tax Act. THE Settlement Commission by order dated January 25, 1991, cancelled the registration given to the petitioner for the assessment years 1975-76 and 1976-77 under the provisions of Section 184(7) of the Act. However, in the said order the Settlement Commission granted immunity from prosecution to the petitioner-firm and held that no penalty need be imposed under Section 271(1)(c) of the Income-tax Act. THE above facts are admitted by both the parties.

(2.) THE point that is now taken by the petitioner is that the return filed for the year 1978-79 is for the period ending on March 31, 1979, and that cancellation of registration under Section 186 of the Act can be made only within a period of eight years from March 31, 1979, i.e., on or before March 31, 1987. This is made clear in the first proviso to Section 186(1) of the Income-tax Act. Hence, the contention is that the order passed by the Settlement Commission in the year 1991 long after which is the last date, viz., March 31, 1987, cancelling the registration is one without any authority, power or jurisdiction.

(3.) SECTION 245D(8) of the Income-tax Act reads :