Firm registration under the Income-tax Act was refused for the year in question, not cancelled, because statutory conditions were not satisfied.

Denial of a firm's registration for the relevant assessment year was treated as a refusal of registration or continuation under section 184(7), not as cancellation of an existing registration. Registration once granted operates for subsequent years only so long as the statutory conditions continue to be satisfied, and the Act does not use "renewal of registration" to create a separate, independent right. On the facts, the objection that the order amounted to cancellation was rejected, and the refusal of registration for the year in question was upheld in favour of the Revenue.

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Issues: Whether the denial of firm registration for the assessment year concerned amounted to cancellation of registration, or was only a refusal of registration/continuation under section 184(7) of the Income-tax Act.

Analysis: Registration once granted has effect for subsequent assessment years subject to fulfillment of the statutory conditions. The expression "renewal of registration" is not used in the Act in the sense of a fresh continuing right independent of those conditions. On the facts, the matter was not one of cancellation of registration, but of refusal to grant registration for the year in question.

Conclusion: The objection that the order amounted to cancellation of registration was rejected, and the denial of registration for the relevant assessment year was upheld in favour of the Revenue.

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