PHOOLCHAND RAMSAHAI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS reference has been made by the Income-tax Appellate Tribunal, Indore, in accordance with the direction given by this court in Misc. Civil Case No. 311 of 1971, decided on November 28, 1972. The following questions have been referred :

(2.) THE reference arises out of the assessment for the year 1961-62. THE assessee, M/s. Phoolchand Ramsahai, Neemuch, is a firm constituted of six partners, having one-sixth share each in the profits and losses of the business of the firm. It carries on business in groundnut and linseed. For the assessment year 1961-62, for which, the accounting period ended on Diwali, 1960, the assessee filed a return of income declaring an income of Rs. 8,441. THE assessee also filed an application for renewal of registration under Rule 6 of the Indian I.T. Rules, 1922. THE application for renewal of registration was filed on May 11, 1961.

(3.) WHEN the assessee went up in appeal against this order it was pointed out that an application for renewal of registration was in fact filed and it was pointed out that the observation of the ITO is contrary to the record. The AAC held that even if the application for renewal was filed, the registration was refused because the account books were not produced under Section 23(4) for the reasons stated by the ITO and he confirmed the order passed by the ITO. On appeal, the Tribunal examined the explanation of the assessee about loss of account books in transit and rejected the same. The Tribunal held that the ITO was justified in refusing renewal of registration. An application under Section 66(1) of the Act was made on behalf of the assessee before the Tribunal but that too was rejected. Thereafter, the assessee approached this court and this court ordered as noted above, directing the Tribunal to make a reference.