Revisional power over firm registration upheld where statutory conditions were unmet and assessment could proceed as unregistered

Where the statutory conditions for firm registration were not satisfied, the Commissioner could invoke revisional power to cancel the registration order and direct assessment as if no valid registration had been granted. The controlling authority on the scope of revisional jurisdiction was applied to hold that the Commissioner was competent to revise the grant of registration on that basis. The issue was therefore decided against the assessee and in favour of the Revenue.

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Issues: Whether the Commissioner could invoke revisional power to cancel the registration of the firm and direct assessment on the footing that no registration had been granted.

Analysis: The surviving question concerned the validity of the Commissioner's order under the revisional provision. The Court followed the controlling authority on the scope of that power and held that the Commissioner was competent to revise the order granting registration and to require assessment to proceed as if registration had not been granted.

Conclusion: The issue was decided against the assessee and in favour of the Revenue.

Ratio Decidendi: Where the statutory conditions for registration are not satisfied, the Commissioner may, in exercise of revisional power, cancel the registration order and direct assessment on the basis that no valid registration exists.

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