1989 (1) TMI 143 - AT - Income Tax

Summary

Issues:
Refusal of registration to the assessee by the ITO, Confirmation of refusal by the CIT(A) for the assessment year 1982-83.

Analysis:
The appeal challenged the refusal of registration to the assessee by the ITO, which was upheld by the CIT(A). The ITO rejected the registration claim due to the non-production of partners for examination despite summons being served. The CIT(A) supported the ITO's decision, emphasizing the need for ascertaining the genuineness of the partnership. The appellant's counsel cited a Gujarat High Court decision and pointed out that the ITO had granted registration in subsequent years after examining partners. The Departmental Representative argued that genuineness was crucial for registration, citing a Supreme Court ruling. The Tribunal noted the Gujarat High Court decision's applicability regardless of registration type and partners' assessments completed before the refusal order. The Tribunal highlighted a CBDT Circular emphasizing assessment principles. Despite considering restoring the matter for partner examination, the Tribunal found it unnecessary due to the ITO's actions in subsequent years, granting registration based on partner examinations. The Tribunal accepted the assessee's claim based on the Gujarat High Court decision and directed the ITO to allow registration, ultimately allowing the appeal.