1971 (11) TMI 41 - HC - Income Tax

Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the Income-tax Officer was justified in not allowing renewal of registration of the firm for the assessment year 1963-64 - When the assessee has several business, if one is illegal, it would not make the constitution of the firm illegal - registration cannot be denied

Summary

The High Court of Allahabad ruled that the Income-tax Officer was not justified in refusing the renewal of registration for the firm for the assessment year 1963-64. The firm was engaged in tyre retreading, and even though it started an additional business of plying buses, the court held that the firm was entitled to registration as the retreading business was lawful. The court answered the question referred in the negative, allowing the assessee's appeal and awarding costs of Rs. 200.