COMMISSIONER OF INCOME TAX Vs. PRAKASH WINE AGENCIES

JUDGEMENT

(1.) THIS is an income-tax reference under S. 256 (1) of the IT Act, 1961 ('the Act') in which the following question has been referred to this Court:

(2.) WE have heard Shri Shekhar Srivastava, the learned counsel for the Department and Shri Vikram Gulati for the assessee. The assessment year is 1981-82 . The assessee had been granted registration from 1978-79 up to 1980-81 but for the asst. yr. 1981-82 the IAC refused to renew the registration holding that the firm was not genuine. The order of the IAC was confirmed by the CIT (A) but in second appeal the Tribunal held in favour of the assessee. The Department then filed an application S. 256 (1) which was allowed and the above mentioned question has been referred to this Court.