Commissioner of Income Tax vs Malhotra Tractor Company

This is a reference u/s 256(1) of the Income Tax Act, 1961 (hereinafter to be referred as "the Act"). The question referred to us is as follows :

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the order of the Income Tax Officer refusing to continue the registration of the firm u/s 184(7) of the Income Tax Act is appealable ?"

This reference is concluded by the two Division Bench decisions of this court in the case of Commissioner of Income Tax Vs. Manuram Babulal, and Commissioner of Income Tax Vs. Gyanchand Bedi, . The relevant assessment year is 1975-76. The question is whether the order refusing continuation of registration by the Income Tax Officer was appealable to the Appellate Assistant Commissioner. The matter has been considered by this court and no detailed judgment is called for. In agreement with the two earlier Division Bench decisions of this court, referred to above, we are of the view that the order was appealable. The question thus referred to us must, therefore, be answered in the affirmative. We hold that the Tribunal was right in holding that the order of the Income Tax Officer refusing to continue the registration of the firm u/s 184(7) of the Act is appealable. The reference is thus answered in favour of the assessee and against the Revenue. There will be no order as to costs.

Let a copy of this order be transmitted to the Assistant Registrar, Income Tax Appellate Tribunal, Patna, in terms of Section 260 of the Act.