RAJ STORES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference under Section 256(1) of the Income-tax Act, 1961 (briefly "the Act, 1961"), by the Income-tax Appellate Tribunal, Allahabad Bench, which at the instance of the assessee has referred to this court the following question for our opinion :

(2.) THE assessee, a firrn constituted under a deed of partnership dated December 29, 1967, came into being with effect from December 11, 1967, with the following constitution : <FRM>JUDGEMENT_119_ITR170_1988Html1.htm</FRM>

(3.) THE assessee appealed to the Appellate Assistant Commissioner who accepted the contention of the assessee that the registration could not be cancelled under Section 186(1) on the facts and in the circumstances of the case and he, therefore, annulled the Income-tax Officer's order. He held that registration can be cancelled only on the ground that there was no genuine firm in existence, that Section 186 cannot be invoked when the firm in fact remained in existence and that the registration cannot be cancelled merely on the ground that no codicil was filed after the minor had become a major.