COMMISSIONER OF Income Tax vs LAXMI RICE MILLS.

G. G. Sohani, Actg. C.J. - As directed by this Court under s. 256(2) of the IT Act, 1961 the ITAT, Nagpur Bench, Nagpur, has referred the following question of law to this Court for its opinion :

"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding the assessee firm was entitled to continuation of registration for the asst. yr. 1984-85 ?"

At the time of hearing ld. counsel for the parties agreed that in view of the decision of this Court in Misc. Civil Case No. 116 of 1982, since reported as CIT v. Laxmi Rice Mills (1987) 59 CTR (MP) 135, this reference has to be answered in the affirmative and against the revenue. Misc. Civil Case No. 116 of 1982 (since reported as CIT v. Laxmi Rice Mills (1987) 59 CTR (MP) 135), a similar question was referred to this Court in the case of the assessee in respect of assessment framed for an earlier year. The ld counsel for the parties agreed that as the facts giving rise to this reference were similar to those which gave rise to the reference in Misc. Civil Case No. 116 of 1982 (since reported as CIT v. Laxmi Rice Mills (1987) 59 CTR (MP) 135), it must be held that the Tribunal was right in holding that the assessee was entitled to continuation of registration.

For all these reasons, our answer to the question referred to this Court is that on the facts and in the circumstances of the case, the Tribunal was right in law in holing that the assessee-firm was entitled to continuation of registration for the asst. yr. 1974-75. In the circumstances of the case, parties shall bear their own costs of this reference.