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TMI Blog1989 (1) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... ent since the genuineness of such partnership also had to be ascertained. As a result of the failure on the part of the assessee to produce the partners for examination, the ITO rejected the claim for registration. 3. The CIT(A) confirmed the action of the ITO although during the course of the hearing his attention was invited to the decision of the Hon'ble Gujarat High Court in the case of LAXMICHAND HIRJIBHAI vs. CIT (1981) 21 CTR (Guj) 181 : (1981) 128 ITR 747 (Guj) with the further submission that the assessments of some of the partners of the firm had already been completed prior to the date of the order of the ITO refusing registration. According to the CIT(A) the assessments of the partners in question were framed under s. 143(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce the ITO following his order for asst. yr. 1982-83 had once again refused registration. The learned counsel also referred to Circular No. F. No. 75/19/191/62-II-J dt, 24th Aug., 1966 issued by the CBDT whereby certain instructions had been given to the ITOs as a result of the acceptance by the Board of the decision of the Hon'ble Supreme Court in the case of CIT vs. MURLIDHAR JHAWAR PURNA GINNING PRESSING FACTORY (1966) 60 ITR 95 (SC). According to him this was a benevolent circular and binding on the ITO. It was finally submitted that the firm be granted registration for the assessment year under consideration. 5. The learned Departmental Representative on the other hand strongly supported the orders of the lower authorities. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the case of LAXMICHAND HIRJIBHAI supra. The said decision would be applicable irrespective of the fact whether it is a case of continuation of registration or that of initial registration. It is an admitted fact that some of the partners of the firm have been assessed prior to the date of the order passed by the ITO refusing registration. It is immaterial if the assessment orders of the partners have been framed under s. 143 (1) since these are also orders passed in accordance with the provisions of law. The circular of the CBDT referred to by the assessee's counsel in fact does not draw any distinction between the assessments framed under s. 143(1) and 143(3) as also the nature of registration whether renewal or initial. 7. At ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion on the part of the CBDT in stating that the provisions of the Act of 1961 were on the same lines as the provisions of the Act of 1922 and even if that deviation from the law was stated that the decision of the Supreme Court in Murlidhar Jhawar's case (1966) 60 ITR 95 (SC) would apply equally to assessments made under the IT Act 1961, that statement in the Board's Circular would be binding on all officers functioning under the Act under s. 119(1) of the IT Act, 1961." At page 754: "In view of the decision in Raza Buland Sugar Co.'s case (1979) 8 CTR (All) 181 : (1979) 118 ITR 50 (SC) and applying the principle laid down by the Supreme Court in that decision, it must be held that the circular of the Board of 24th August, 1966 must b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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