COMMISSIONER OF INCOME TAX Vs. RAMRAJ CONSTRUCTION

JUDGEMENT

(1.) THE question that arises in all tax cases is whether the ITO was justified in cancelling the registration granted to the assessee-firm for the assessment years from 1971-72 to 1973-74.

(2.) THE ITO originally granted registration to the assessee-firm and later, on the basis of the settlement petition filed by the assessee, cancelled the registration and assessed the assessee-firm as an unregistered firm. The CIT(A) agreed with the views of the ITO and upheld the order of the ITO holding that the assessee had not distributed the concealed profits and not entitled to the registration.

(3.) THE reference is pending from the year 1992 and in spite of that, the assessee has not yet been served till date. However, we find that the reference arising out of an earlier order of the Tribunal rendered in the case of Ramraj Finance, Madras came up for consideration before this Court in Tax Case Nos. 1449 to 1451 of 1986 and this Court upheld the order of the Tribunal holding that the assessee was entitled to the benefit of registration. This Court answered both the questions referred at the instance of the Revenue against the Revenue and in favour of the assessee.