9911796707
TMI Blog1995 (7) TMI 116X X X X Extracts X X X X X X X X Extracts X X X X ..... was not genuine, the assessee was not entitled to registration. The assessee appealed. The first appellate authority set aside the order of refusal of registration on the ground that the assessee was not given an opportunity to file an application to condone the delay the matter of filing Form No. 11-A. Subsequently, the Assessing Officer condoned the delay and allowed registration under the Income-tax Act. Therefore, exercising his jurisdiction under section 263 of the Income-tax Act, the Commissioner of Income-tax held that the Assessing Officer's order granting registration to the assessee-firm was erroneous and prejudicial to the interests of revenue. He held that the assessee was doing banking business and the partners in the firm wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Registration dated 19-8 85. (9) CIT's order under section 263 of the Act directing the Officer to refuse registration. (10) Order of the ITO under section 185(1)(a) of the Act granting registration. (11) CIT (Appeals) order in the original assessment. (12) Statement of facts and grounds of appeal before the CIT(Appeals). (13) Original assessment order under section 143 (3) dated 12-3-81. (14) Copy of the Deed of Partnership executed on 1-7-79. (15) Income Expenditure A/c. and Balance-sheet for the year ended 31-3-80. (16) Assessment orders for the years 1977-78, 1978-79, 79-80 and 1981-82. The assessee has also furnished cash/transfer vouchers. The cash/transfer voucher is only an authority to withdraw money from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Act or is formed in pursuance of some other Indian law." What the provision lays down is that if an association consisting of more than 10 members is formed for the purpose of carrying on the business of banking, it should be either registered as a company or under other Indian Laws. This is a case where the assessee is not carrying on the business of banking within the purview of Banking Regulations Act but carries on money-lending business in partnership consisting of more than 10 members but duly registered under the Indian Partnership Act and the Kerala Money Lenders Act. Therefore, it cannot be said to be in contravention of section 11 of the Companies Act so as to declare it as an illegal association. The assessee is a validly con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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