9911796707
TMI Blog2005 (5) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... plant and machinery and assets, there is no firm existing in the eye of law and the renewal of registration originally granted was rightly withdrawn by the Assessing Officer under section 186(1) - Tribunal was justified in holding that the cancellation of registration was valid - - - - - Dated:- 24-5-2005 - Judge(s) : K. S. RADHAKRISHNAN., C. N. RAMACHANDRAN NAIR. JUDGMENT The judgment of the court was delivered by C.N. Ramachandran Nair J.- This case referred to this court under section 256(1) of the Income-tax Act, 1961, by the Income-tax Appellate Tribunal, Cochin Bench, arises from the order of the Tribunal for the assessment year 1989-90. Even though the assessee sought reference of several questions of law for decision of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ticed from the finding of the Assessing Officer that there was no entry relating to purchase and sale of prawn in the books of account of the assessee. Therefore the entries in the profit and loss account are only manipulation and are not reflected in the books of account of the assessee, is the finding of the Tribunal. Going by the findings of the three authorities below, including the Tribunal, we have to proceed on the assumption that the assessee had no business during the relevant accounting year and it is on record that even in the preceding year, the assessee did not have any business and the assessee had during the year, sold the plant and machinery and assets of the establishment. Therefore business was not only not continued but e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the firm for the purpose of continuation of registration, and if the firm which got renewal of registration was not legally in existence, then the question of considering such firm as a genuine firm does not arise. He also relied on sections 4 and 6 of the Partnership Act and contended that a firm cannot exist except for the purpose of carrying on business and when the assessee admittedly closed the business, there is no firm in existence and the argument to the contrary cannot be sustained. The assessee also has no case that it carried on business. However, it raised a technical contention that the genuineness of the firm is different from existence of the firm. Counsel for the assessee contended that once the firm is allowed renewal of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irm, if, after the grant of registration, the Income-tax Officer finds that the firm was registered under section 185 of the Act erroneously. The same consideration which prevail for according registration under section 185 should also prevail when the registration is sought to be cancelled. The Legislature did not intend that registration could be cancelled under section 186, only if the firm is found to be not factually genuine and not in a case where a firm, having no legal existence, was registered." The Andhra Pradesh High Court rendered the above decision based on the decision of the Supreme Court in CIT v. Sivakasi Match Exporting Co. [1964] 53 ITR 204 wherein the Supreme Court dealing with a similar provision, namely, section 26A ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
