9911796707
TMI Blog1985 (4) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... ct of 1974-75 on the ground that the respondent firm had not filed information about the formation of partnership to its principal and further that information was given to the State Bank of India as late as on 25-5-1975, though the instrument was executed on 26-12-1973 incorporating certain changes. 3. In the first appeal against the said order under section 185(1)(b), the concerned AAC on 18-8-1978 reversed the ITO's order and directed registration by observing that the grounds on which the ITO's order was based was simply irrelevant to the question whether a genuine firm had come into existence and further all the formalities having been completed, the appellant was entitled to registration. To complete the picture, we like to reproduce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directed by an appellate authority after refusal by the ITO, the order of cancellation of registration by the ITO, must be set aside as an inferior authority cannot set at naught in appellate order. 6. We have informed ourselves that the judgment in Rameswar Goenka's case was brought to the notice of the ITO also in section 186(1) proceedings. The ITO, however, bypassed the judgment by merely stating that he was outside the jurisdictional area of theAssamand Nagaland High Court, not a very correct approach. 7. After hearing the parties, we endorse and confirm the view taken by the ACC in the order appealed against that the ITO misdirected himself in cancelling the registration in as far as the assessment year 1974-75 is concerned because ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le. This is clear from a bare reading of the following provision of section 186(1), which is relevant for the present appeal : " If where a firm has been registered, or its registration has effect under sub-section (7) of section 184 for an assessment year, the Income-tax Officer is of opinion that there was during the previous year no genuine firm in existence as registered, he may, after giving the firm a reasonable opportunity of being heard and with the previous approval of the Inspecting Assistant Commissioner, cancel the registration of the firm for that assessment year : Provided that no such cancellation shall be made after the expiry of eight years from the end of the assessment year in respect of which registration has been gran ..... X X X X Extracts X X X X X X X X Extracts X X X X
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