Appealability of refusal to continue registration under the Income-tax Act was upheld, making the assessee's appeal maintainable.

An order refusing continuation of registration under the Income-tax Act, 1961 is appealable under section 246(c), because prior authority had already settled that such a refusal falls within the scope of an appealable order. The Patna HC followed that line of authority and held that the Appellate Assistant Commissioner could entertain the assessee's appeal. The result was that the question was answered in the affirmative and the appeal was maintainable under section 246(c), in favour of the assessee and against the Revenue.

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Issues: Whether an order refusing continuation of registration is appealable under section 246(c) of the Income-tax Act, 1961.

Analysis: The reference arose under section 256(1) of the Income-tax Act, 1961 on the question whether the Appellate Assistant Commissioner could entertain an appeal relating to the assessment year 1971-72. The Court noted that prior decisions had already settled the position that an order of the Income-tax Officer refusing continuation of registration is appealable under section 246(c), and followed that line of authority.

Conclusion: The question was answered in the affirmative, holding that such an appeal is maintainable under section 246(c) of the Income-tax Act, 1961, in favour of the assessee and against the Revenue.

Ratio Decidendi: An order refusing continuation of registration is appealable under section 246(c) of the Income-tax Act, 1961.

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