1994 (4) TMI 18 - HC - Income Tax

Summary

Issues Involved:
1. Whether the Tribunal was right in law in not permitting the assessee to raise additional legal ground.
2. Whether the Tribunal was right in law in holding that reconsideration on the point of status cannot be done in view of section 185(5) of the Income-tax Act, 1961.
3. Whether the Tribunal was right in holding that the Income-tax Officer was right in refusing to grant registration to the assessee u/s 185(5) of the Act.

Summary:

Issue 1: Additional Legal Ground
The Tribunal concluded that no good reasons were shown for not raising the additional legal ground at the time of filing the appeal. The Tribunal found no bona fide omission on the part of the assessee in raising this ground. The Tribunal's discretion in not permitting the assessee to raise additional legal grounds was held to be in accordance with law and did not require interference.

Issue 2: Reconsideration on Point of Status
The Tribunal held that reconsideration on the point of status cannot be done in view of section 185(5) of the Income-tax Act, 1961. This question was deemed not to arise out of the order of the Tribunal since the first point was already answered in favor of the Revenue.

Issue 3: Refusal to Grant Registration
The Tribunal upheld the Income-tax Officer's refusal to grant registration to the assessee u/s 185(5) of the Act. The Tribunal found that the assessee failed to comply with notices issued u/s 142(1) and 143(2), warranting a best judgment assessment u/s 144. The Tribunal concluded that the discretion exercised by the Income-tax Officer to refuse registration was not arbitrary or capricious but based on sufficient material on record.

Conclusion:
Both references were answered in favor of the Revenue and against the assessee. The Tribunal's decisions on all issues were upheld.