JATIA INVESTMENT CO Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) In this reference under Section 256(1) of the Income-tax Act, 1961, the following questions of law have been referred to this court for the assessment year 1976-77 : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that as the assessee was only investing funds in shares, it was not doing business ?

(2.) If the answer to the above be in the affirmative, whether the Tribunal was justified in refusing registration to the firm on the ground that the assessee was doing no business ?"

(3.) In respect of the previous year relevant to the assessment year 1976-77, the assessee-firm claimed registration under Section 185 of the Act for which Form No. 11 was filed in time. The Assessing Officer declined to allow the registration, as he came to the conclusion that there was no business carried on by the firm this year. He passed the order after obtaining the necessary direction under Section 144B from the Inspecting Assistant Commissioner who observed as follows :