1989 (2) TMI 16

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....CTG. C. J.-By this reference under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Jabalpur Bench, Jabalpur, has referred the following question of law to this court for its opinion : "Whether, on the facts and in the circumstances of the case, the assessee-firm is entitled to registration despite the assessee's failure to di....

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....the order passed by the Income-tax Officer was upheld. The assessee, thereupon, preferred second appeal before the Tribunal. The Tribunal held that the assessee-firm was entitled to registration. The Tribunal, therefore, allowed the appeal. Aggrieved by the order passed by the Tribunal, the Revenue sought reference and it is at the instance of the Revenue that the aforesaid question of law has bee....

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....me-tax Officer was not justified in refusing registration. It is true that in R. C. Mitter and Sons v. CIT [1959] 36 ITR 194, it has been laid down by the Supreme Court that one of the essential conditions that should be fulfilled before a firm is entitled to registration is that the profits (or loss, if any) of the business relating to the previous year, should have been divided or credited, as t....