Fresh registration application valid during remanded assessment proceedings where earlier assessment orders had been set aside.

Where assessment orders are set aside in revision and fresh assessment is directed, the earlier orders cease to exist and the proceedings remain pending until new final orders are passed. On that basis, the income had not yet been assessed for the relevant years, so a fresh application for registration could still be made before assessment under the governing rule. The remand left the matter open, and the reassessing authority was competent to entertain and allow the application during the revised assessment proceedings.

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Issues: Whether a fresh application for registration of a firm could validly be entertained during revised assessment proceedings after the original assessment orders were set aside and remitted for fresh disposal.

Analysis: The assessment orders for the relevant years had been set aside in revision, with directions for fresh assessment. Once set aside, the earlier assessment orders ceased to exist, and the assessment proceedings were treated as still pending until fresh final orders were passed. On that footing, the agricultural income for those years had not yet been assessed within the meaning of the governing rule. The scheme of section 27 and rule 2 permitted an application for registration before assessment was made, and a remand for fresh assessment left the matter open for such an application. The fresh application was therefore within rule 2(a), and the reassessing authority was competent to consider and allow it.

Conclusion: The fresh application for registration was validly entertained during the revised assessment proceedings, and the assessee was entitled to registration.

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