NARANDAS MATHURADAS NARIELWALA Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference made under S. 66(2) of the Indian I.T. Act, 1922. The assessee -firm had applied for renewal of registration under S. 26A of the Indian I.T. Act, 1922. The ITO found that year after year the profit or loss of the assessee -firm was not being distributed but carried forward in the books of the firm and, therefore, the firm was not entitled to renewal of the registration. He, therefore, refused to renew the registration of the firm.

(2.) WHEN the firm took up the matter in appeal to the AAC, the AAC confirmed the order of the ITO. It seems to have been admitted before the AAC that the assessee had not duly distributed the profits amongst the partners. This is clear from the following part of his order :

(3.) THE appeal, therefore, came to be dismissed.