BHATIA MOTOR STORES Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an appeal under Section 260a of the IT Act, 1961 (for short 'act' ).

(2.) THE relevant facts for purpose of disposal of this appeal are that the appellant filed retum of income for the asst. yr. 1990-91 on 8th Oct. , 1990 declaring income at Rs. 1,14,294 and claiming status of registered firm. The appellant also filed an application under Section 184 of the Act in the prescribed form to treat the appellant as a registered firm. The AO passed an order on 16th July, 1991 under Section 185 of the Act rejecting the application of the appellant to treat the firm as a registered firm and framed the assessment in the status of association of persons (for short 'aop') and assessed the income at Rs. 1,96,689.

(3.) AGGRIEVED, the appellant preferred an appeal before the Commissioner of Income-tax (Appeals) [for short CIT (A)] and by order dt. 24th July, 1992, the CIT (A) annulled the assessment holding that no assessment could be framed against the appellant in the status of AOP, since no return was filed in the status of AOP nor notice under Section 142 (1)7148 of the Act was issued to the appellant in the status of AOP. The CIT (A) while setting aside the order of the AO, directed the AO to pass a fresh order of assessment after giving due opportunity of hearing to the appellant.