1972 (4) TMI 15

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....e under section 256(1) of the Income-tax Act, 1961, hereinafter called " the Act ", made at the instance of the assessee. The question of law referred is : " Whether, on the facts and in the circumstances of the case, the assessee-firm is entitled to registration ? " The assessee-firm made an application for registration under section 185 of the Act in the assessment year 1967-68. The Income....

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....n & Co." who were excise contractors. The investment of the moneys with M/s. Narayan & Co., it is conceded, does not amount to carrying on business under the terms of the partnership. The question is whether the assessee is entitled to registration. Section 185 of the Act lays down the conditions on the fulfilment of which the Income-tax Officer shall grant registration. Section 185 reads : ....

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....g to register the firm. The learned counsel invited our attention to the decision of the Supreme Court in Commissioner of Income-tax v. Sivakasi Match Exporting Co. which was a case under section 26A of the 1922 Act. Subba Rao J., as be then was, said : " A combined effect of section 26A of the Act and the rules made thereunder is that if the application made by a firm gives the necessary parti....

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.... conditions laid down by the Supreme Court have been satisfied and, therefore, the assessee was entitled to registration. Sri S. R. Rajasekhara Murthy, learned counsel for the revenue, contended that the existence of a business is essential and in the absence of the existence of a business there is no legal existence for the firm. Therefore, he argued that the Tribunal was right in refusing reg....