2006 (2) TMI 138

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.... wherein the Commissioner of Income-tax has confirmed the order of the Assessing Officer under the Income-tax Act cancelling renewal of registration of the firm granted to the petitioner under section 186 of the Income-tax Act, 1961 for the assessment years 1990-91, 1991-92 and 1992-93. The petitioner is a partnership constituted for construction of a building which is let out on rent. The firm wa....

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....lation of registration only if the firm as registered is not found to be genuine. Standing counsel however relied on a Division Bench decision of this court in Madras Pack Marine Co. v. CIT [2005] 278 ITR 85 whereunder this court has held that if a firm is not entitled to registration either on account of the fact that it has no legal existence or is not genuine or is bogus, then the grant of r....

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....e petitioner was not carrying on business and in the returns filed the petitioner does not claim its rental income as business income, it is a conceded fact that the petitioner is engaged in no business. Even though counsel for the petitioner contended that the construction of a building by two brothers and their family members for the purpose of letting out and the actual letting out of the same ....