COMMISSIONER OF INCOME-TAX Vs. AJAY TEXTILES

JUDGEMENT

(1.) THE Commissioner of Income-tax through this petition filed under Section 256 (2) of the I. T Act, 1961 (hereinafter referred to as " the Act "), prays for the issuance of a mandamus to the Tribunal, Amritsar Bench, to draw up a statement of the case and refer to this court the following question of law, which arises out of its order dated 29th September, 1975:

(2.) THE ITO refused to allow renewal of registration for the assessment year 1967-68 to the assessee, vide his order dated 7th March, 1972, which order was upheld in appeal by the AAC. On second appeal, the Tribunal accepted the assessee's claim for renewal of registration and-held as follows:

(3.) THE Department affer the decision of the Tribunal, filed an application under Section 256 (1) of the Act, but the same was rejected by the Tribunal, as no question of law arose. We have heard the learned counsel for the petitioner and find no merit in this case. As is evident from the order of the Tribunal, it was only after appraising the entire material on the record that the Tribunal held that 14 days' notice as required under Section 186 (2) of the Act, was not served upon the assessee before the cancellation of its registration. It would be pertinent to observe that even before the Tribunal, the Revenue could not satisfy that any notice was served on the assessee. There can be no gainsaying that the condition precedent (service of requisite notice) for the cancellation of the registration, had not been satisfied. The finding of the Tribunal that notice under Section 186 (2) of the Act was not served upon the assessee, is a pure finding of fact. The Tribunal rightly declined the application as no question of law arose, for a reference to our decision.