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TMI Blog1984 (7) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to the assessee-firm for the assessment year 1974-75 before the ITO could cancel the registration under s. 186(2)?" The question required by the assessee for reference was not in this form. The assessee suggested the following two questions: " (1) On the facts and in the circumstances of the case, whether the Tribunal was justified in law in holding that registration to the assessee-firm was rightly cancelled under s. 186(2) of the I.T. Act, 1961, for the assessment year 1974-75 ? (2) On the facts and in the circumstances of the case, whether registration for the assessment year 1974-75 can be cancelled without first granting the registration ? " The assessee is a firm which had been registered up to the assessment year 1973 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elled the registration. The assessee appears to have urged before the AAC that since no specific date of hearing had been given by the ITO, there was no opportunity of being heard to the assessee as required under s. 186(2). The AAC was not impressed with that contention. He said : " just because no specific date of hearing had been given, it cannot be said that opportunity of being heard had not been given to the appellant." He, however, held that, having regard to the circumstances of the case, the cancellation of the registration was arbitrary and the ITO should have exercised the discretion in favour of the assessee and should not have cancelled the registration. He, accordingly, directed the ITO to grant registration to the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of the firm for the assessment year, after giving the firm not less than fourteen days notice intimating his intention to cancel its registration and after giving it a reasonable opportunity of being heard." This sub-section covers not only a firm which has been registered but also a firm whose registration, has the effect under sub-s. (7) of s. 184 for any assessment year. Sub-s. (7) of s. 184 reads " Where registration is granted to any firm for any assessment year, it shall have effect for every subsequent assessment year." Proviso thereunder prescribes two conditions: (i) that there is no change in the constitution of the firm or the shares of the partners as evidenced by the instrument of partnership on the basis o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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