TYRESOLES INDIA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) -

(2.) THIS is a reference under section 66 of the Indian Income-tax Act arising out of a controversy between the revenue and the assessee, whether the firm of partnership styled Tyresoles (India), Calcutta, is registrable under section 26A of the Act for the assessment year 1952-53, 1953-54, 1954-55, 1955-56, and 1956-57. The Income-tax Officer refused registration and on appeal by the assessee to the Appellate Assistant Commissioner registration was refused for the first four years, but was granted for the fifth year 1956-57. Both the assessee and the department preferred appeals to the Income-tax Officer. The Tribunal which restored the decision of the Income-tax Officer. The Tribunal however has referred the following questions of law to this court under section 66(1) of the Act at the instance of the assessee :

(3.) FOR the assessment year 1952-53, two applications for registration of the firm were filed under section 26A. One was a renewal application in respect of the profits up to 21 September, 1950, the date of the alleged dissolution signed by the five partners and the others was an application for registration for the period thereafter signed only by the two partners, the limited companies. FOR the subsequent assessment years applications for renewal of registration were filed signed by the two limited companies, quite properly, as even if there was a reconstitution of the firm Davis group had retired.