SHANKARLAL PRITHVIRAJ Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this reference under Section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Indore Bench, Indore, has referred the following questions of law to this court for its opinion ;

(2.) THE material facts giving rise to this reference, briefly, are as follows : THE assessee is a partnership firm carrying on business as a liquor contractor, THE excise licence for the assessment years in question was obtained by one Prithviraj, one of the partners of the assessee, in his own name. THE Income-tax Officer held that Rule 6 of the Madhya Pradesh Excise Rules prohibited a licensee from entering into a partnership with others. THE Income-tax Officer, therefore, cancelled the registration of the assessee-firm for the assessment years 1975-76, 1976-77, 1977-78 and 1978-79. He also refused registration to the newly constituted firm for the years 1979-80 and 1980-81. Aggrieved by the order passed by the Income-tax Officer, the assessee preferred an appeal before the Appellate Assistant Commissioner who dismissed the appeal. On further appeal before the Tribunal, the Tribunal upheld the order passed by the Income-tax Officer and dismissed the appeal preferred by the assessee. Aggrieved by the order passed by the Tribunal, the assessee sought a reference and it is at the instance of the assessee that the aforesaid questions of law have been referred to this court for its opinion.

(3.) CONSEQUENTLY, our answers to all the three questions referred by the Tribunal are in the affirmative and against the assessee. In the circumstances of the case, parties shall bear their own costs of this reference.