Court affirms status change, allows appeal on tax determination.

The court held that the Commissioner's alteration of the assessee's status to an "unregistered firm" under section 34 was final and conclusive as the assessee failed to challenge it in the High Court. However, the court allowed an appeal under section 31 against the assessing authority's order related to the Commissioner's direction, permitting the assessee to raise objections on tax determination and income fixation. The court emphasized that while the status issue was settled, other matters could be addressed in the appeal. The court directed the Appellate Assistant Commissioner to consider the appeal accordingly, maintaining the status of the assessee as an "unregistered firm."

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Issues:
1. Whether the status assigned to the assessee as "unregistered firm" by the Commissioner is final and conclusiveRs.
2. Whether an appeal against a revised assessment order passed pursuant to the order of the Commissioner under section 34 is maintainableRs.

Analysis:

Issue 1:
The Commissioner, in exercise of powers under section 34, altered the status of the assessee from "registered firm" to "unregistered firm." The Tribunal found that the Commissioner's order under section 34(1) became final and conclusive as the assessee did not make a reference to the High Court as required by sub-section (2) of section 34. The court held that the provision in sub-section (2) is mandatory, making the Commissioner's order final and conclusive. The change in status to "unregistered firm" by the Commissioner was considered final and conclusive, as it prejudicially affected the assessee.

Issue 2:
The Tribunal ruled that an appeal against the revised assessment order made by the assessing authority following the Commissioner's direction under section 34(1) was not competent. However, the court disagreed with this view. It held that an appeal under section 31 of the Act is maintainable against the assessing authority's order assigning the status prescribed by the Commissioner. The court clarified that while the status issue was concluded by the Commissioner's order, any other objections regarding tax determination or income fixation could still be raised in an appeal under section 31. Therefore, the court directed the Appellate Assistant Commissioner to consider the appeal on its merits, treating the assessee as an "unregistered firm."

In conclusion, the court disposed of the tax revision cases, allowing the assessee to raise objections on quantum and other points, except for the status issue that had already been concluded. The court's decision emphasized the maintainability of an appeal under section 31 against the assessing authority's order following the Commissioner's direction under section 34.

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