9911796707
TMI Blog1991 (10) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... enewal ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the Income-tax Officer could not refuse renewal of registration under section 185(5) of the Income-tax Act, 1961 ? " Learned standing counsel representing the Commissioner of Income-tax does not dispute that the questions referred are covered by two decisions of this court reported in Nand Singh Taneja and Sons v. CIT [1973] 91 ITR 202 and Addl. CIT v. Radha Kishan Banwarilal [1979] 116 ITR 970. The decisions fully support the assessee. The relevant assessment year is 1972-73. The Income-tax Officer made an assessment under section 144 of the Income-tax Act, 1961, on the ground that there was no compliance by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... renewal of registration. In support, reliance was placed on Nand Singh Taneja and Sons v. CIT reported in [1973] 91 ITR 202 (All). The Tribunal accepted the submissions of the assessee, set aside the orders of the Income-tax Officer and the Appellate Assistant Commissioner and sent back the case to the Income-tax Officer for verification whether the assessee had complied with the formalities laid down for renewal of registration. The Tribunal held that the assessee having been allowed registration for the preceding years, the Income-tax Officer could not legally refuse renewal of registration under section 185(5), relying on Nand Singh Taneja and Sons v. CIT [1973] 91 ITR 202 (All). In the case of Nand Singh Taneja [1973] 91 ITR 202, this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portunity must be given before the registration is cancelled. In the absence of such a positive order, therefore, it is not open to the Income-tax Officer to refuse renewal of registration under section 185(5). Nor can he ignore the declaration furnished under section 184(7) simply on the ground that the firm has not furnished the return of its income. In the present case, undisputedly, the assessee had been allowed registration for the preceding year and the Income-tax Officer refused renewal of registration in the purported exercise of his power under section 185(5) on the ground of non-compliance with the notice under section 142(1). No positive order of refusal to renew registration under section 185(5) nor of cancellation under sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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