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of <h1>Court clarifies non-appealability of registration renewal cancellation under Income-tax Act</h1> <h3>Sir Hukamchand and Munnalal Co. Versus Commissioner of Income tax</h3> Sir Hukamchand and Munnalal Co. Versus Commissioner of Income tax - [1962] 46 ITR 794 (MP) Issues:Appealability of an order passed by the Income-tax Officer under rule 6B of the Indian Income-tax Rules canceling the certificate of renewal of registration granted to the assessee under section 30 of the Income-tax Act.Detailed Analysis:1. Facts of the Case:The petitioner claimed to be a partnership firm initially constituted under a deed dated July 16, 1948, and was granted registration under section 26A of the Income-tax Act for the year 1950-51. The registration was renewed for subsequent years but was refused for the year 1954-55. The Income-tax Officer canceled the renewal granted for the year 1953-54 on the ground of no genuine firm existence, despite the Tribunal granting registration for that year.2. Arguments Presented:The petitioner contended that rule 6B could not exist independently of section 26A, should be in consonance with that section, and an order under rule 6B should be construed as one made under section 26A. It was argued that an order of cancellation under rule 6B should be treated as refusal under section 30(1) of the Income-tax Act for appeal purposes.3. Validity of Rules and Orders:The court referred to previous judgments to establish the validity of rule 6B and the distinction between cancellation of registration under section 23(4) and rule 6B. The court emphasized that rule 6B clarifies the authority of the Income-tax Officer to review his decision regarding the registration of a firm when it is discovered that the firm did not exist.4. Appealability of Cancellation Order:The court rejected the argument that an order of cancellation under rule 6B should be construed as refusal under section 30(1) of the Act. It was highlighted that section 26A does not specify the orders that may be passed, and only refusal to register a firm under section 26A is appealable under section 30(1). Since there is no provision for appeal against an order of cancellation under rule 6B, it cannot be constructively regarded as appealable.5. Conclusion:The court held that in the absence of an express provision in the Income-tax Act, an order under rule 6B canceling the renewal of registration is not appealable under section 30(1) of the Act. The petitioner was directed to pay all costs of the reference.This judgment clarifies the appealability of an order of cancellation under rule 6B of the Indian Income-tax Rules, emphasizing the distinction between cancellation under section 23(4) and rule 6B. It establishes that an order under rule 6B cannot be treated as refusal under section 30(1) for appeal purposes due to the absence of specific provisions for appeal against such orders.
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