2001 (4) TMI 55 - HC - Income Tax

Summary

The High Court of Madras held that a firm, formed in 1964 and granted registration in 1966, ceased business in 1973-74. The firm's income from insurance commissions earned by a partner's relative could not be considered firm income as the firm did not have a license under the Insurance Act. The firm's registration was rightly cancelled from 1973-74 onwards. The Tribunal's decision was overturned, stating that a firm cannot retain registered status if it ceases business activity. The judgment favored the Revenue over the assessee.