1986 (7) TMI 188

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....of registration as per his order dt. 24th July, 1984 passed under s. 185(5) of the Act. The said order read as under: "As a sequel to the best judgment assessment made on the assessee for its failure to comply with the terms of notices under ss. 143(2) and 142(1) for the year 1982-83, after giving notice under s. 186(2) of the Act which was duly served on the partner on 9th July, 1984 and as ther....

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....t power has been exercised fairly and reasonably. 3. We have considered the rival submissions. In our view even if the best judgment assessment is made refusal of registration is not automatic. The ITO will have to consider the question of registration on merits. In s. 185(5) the word "may refuse" has been used but not "shall refuse". Thus only a discretionary power is vested in the ITO. Such a d....

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....oduction of books of accounts renewal of registration cannot be refused and the ITO if he refuses renewal of registration has to give reasons for his order. In J.M. Seth vs. CIT, Madras (1965) 56 ITR 293 (Mad) the Madras High Court held that the concluding portion of s. 23(4) of the Indian IT Act, 1922 does not mean that if a best judgment assessment under that clause is made on a firm for non-pro....