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Issues:
Whether separate orders have to be passed and communicated to the applicants on the application for registration of sub-partnership firms made under section 27 of the Agricultural Income-tax Act, 1950, read with rule 4(2) and rule 7 of the Agricultural Income-tax Rules, 1951. Detailed Analysis: The case involved sixteen referred cases at the instance of the Department regarding the rejection of applications for registration of sub-partnership firms and the subsequent assessment of partners of a firm individually. The assessees formed sub-partnership firms with certain individuals and applied for registration under the Agricultural Income-tax Act for the assessment year 1980-81. The Agricultural Income-tax Officer rejected the applications and assessed the partners individually in a common order. Appeals were filed before the Appellate Assistant Commissioner, which were dismissed, leading the assessees to approach the Sales Tax Appellate Tribunal. The main contention before the Tribunal was that separate orders on the applications for registration were mandatory under the Act and Rules. The Tribunal found merit in this contention and remitted the matter back to the assessing authority for proper disposal of the registration applications. The Tribunal directed the assessing authority to pass separate orders on the applications before finalizing the assessment for the year. The Department challenged this specific direction before the High Court. The High Court analyzed the provisions of rule 4(2) and rule 7 of the Agricultural Income-tax Rules, which require separate orders for grant or refusal of registration. The Court noted that separate appeals are provided against orders rejecting registration applications. The Court emphasized the importance of maintaining separate records for registration and assessment purposes. The State representative did not seriously dispute this legal position but argued that the matter had been elaborately discussed in the assessment orders. Ultimately, the High Court held in favor of the assessee, stating that separate orders on the registration applications are necessary under the Act and Rules. The Court directed a copy of the judgment to be forwarded to the Income-tax Appellate Tribunal for passing consequential orders.
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