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TMI Blog1985 (11) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... ear 1974-75 was competent ? 2. Whether, on the facts and circumstances of the case, the appeal preferred by the assessee against the assessment made on it for the assessment year 1974-75, disputing the status adopted as unregistered firm, was competent?" The assessee-firm made an application to the Income-tax Officer for registration under section 184 of the Income-tax Act, 1961. Since the application was filed 37 days out of time, it was accompanied by a separate application for condonation of delay. The application for condonation of delay was rejected by the Income-tax Officer by his order marked as annexure C. By his order marked as annexure D, the assessee was assessed on the basis that it was an unregistered firm. The assessee c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the provisions of sub-section (2), any assessee aggrieved by any of the following orders of an Income-tax Officer may appeal to the Appellate Assistant Commissioner against such order... (c) an order against the assessee, where the assessee denies his liability to be assessed under this Act or any order of assessment under sub-section (3) of section 143 or section 144, where the assessee objects to the amount of income assessed, or to the amount of tax determined, or to the amount of loss computed, or to the status under which he is assessed : ... (j) an order under clause (b) of sub-section (1) or under sub-section (2) or sub-section (3) or sub-section (5) of section 185." (emphasis supplied) The powers of the Appellate Assis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h he is assessed, an appeal will lie against the order of assessment (section 246(1)(c)-see Explanation (2) to section 143). It is open to the assessee to challenge an order on the ground that it has been assessed by imputing to it the wrong status. The question whether it ought to have been assessed as a registered firm is matter relating to status. The order under section 185(1)(b) or (2) or (3) and (5) is also appealable [section 246(1)(j)]. The Appellate Assistant Commissioner has all the powers of the Income-tax Officer in exercising his appellate power in so far as he can confirm, reduce, enhance or annul the assessment or set aside the same and refer the case back for fresh consideration (section 251). If the assessee's applicatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cy between these two orders. In the light of the decision (see CIT v. Pushpaka Travels [1985] 152 ITR 717 (Ker)) the Appellate Assistant Commissioner was justified in refusing to interfere with the order rejecting the application for condonation of delay. But he was equally justified in expressing his view that the delay should be condoned and that the case reconsidered with reference to the merits of the application for registration. Clause (c) of sub-section (1) of section 246 specifically provides for an appeal where the assessee objects to the status under which he is assessed. The assessee's objection on the merits of the assessment is that the rate applied by the assessing authority was inapplicable to the assessee, for according to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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