1966 (1) TMI 19

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....r section 26A of the Act. The facts material for the said question may be briefly stated. The appellant is a firm constituted under a deed of partnership dated July 16, 1948. The Income-tax Officer registered the said firm under section 26A of the Act for the year 1950-51. The registration was renewed for the years 1951-52 and 1952-53. On November 30, 1957, the Income-tax Officer renewed the registration for the assessment year 1953-54. On March 6, 1959, on the ground that the firm was not a genuine one, the said officer cancelled the registration under rule 6B of the Income-tax Rules. The appellant preferred an appeal against that order to the Appellate Assistant Commissioner, Indore. On July 15, 1959, the said Assistant Commissioner re....

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....tment for the time being in force relating to income-tax or super-tax. (2) The application shall be made by such person or persons, and at such times and shall contain such particulars and shall be in such form, and be verified in such manner, as may be prescribed ; and it shall be dealt with by the Income-tax Officer in such manner as may be prescribed. Rule 6 : Any firm to whom a certificate of registration has been granted under rule 4 may apply to the Income-tax Officer to have the certificate of registration renewed for a subsequent year . . . Rule 6A : On receipt of an application under rule 6 the Income-tax Officer may, if he is satisfied that the application is in order and that there is or was a firm in existence constitut....

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....d (iii) he can cancel the renewal of registration if he is satisfied that the renewal has been obtained without there being a genuine firm in existence. The crucial point to be noticed is that the said three kinds of orders, having regard to the circumstances of each case, will be made only in the application for renewed registration. The rules do not provide for independent proceedings for the cancellation of the renewal certificate. In effect, the Income-tax Officer, after setting aside his earlier wrong order made under a misapprehension, refuses renewal of the certificate of registration. If so, it follows that the order cancelling registration is nothing more than refusing to renew the certificate of registration. If that be the constr....

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.... may be placed in juxtaposition : Section 23(4) Section 26A(2) ...... the Income-tax Officer...... in The application shall be ............ the case of a firm, may refuse to dealt with by the Income-tax register it or may cancel its Officer in such manner as may be registration if it is already registered : ... prescribed. A comparative study of the relevant parts of these two provisions at once shows the distinction between the two. Under section 23(4) while the Income-tax Officer can make an order refusing to register a firm or may cancel the registration if it is already registered, under section 26A(2) he can only make an order in such manner as may be prescribed. The manner prescribed, as we have already indicated ear....