Commissioner of Income Tax Vs Sharma and Company

1. This is a reference u/s 256(1) of the Income Tax Act, 1961 (hereinafter to be referred to as "the Act"). The only question referred to us for our opinion is as follows :

"Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the order passed u/s 184(7) of the Income Tax Act by the Income Tax Officer is appealable ?"

2. The relevant assessment year is 1975-76. The assessee is a partnership firm. It applied for continuation of registration in terms of Section 184(7) of the Act. The Income Tax Officer rejected the application for registration. The assessee, being aggrieved by the order of the Income Tax Officer, appealed to the Appellate Assistant Commissioner, who allowed the appeal. The Revenue contested the matter before the Appellate Tribunal but without any success. Hence this reference to us.

3. The question referred to us for our opinion is concluded by two decisions of this court in the cases of Commissioner of Income Tax Vs. Manuram Babulal, and Commissioner of Income Tax Vs. Gyanchand Bedi, , in which it was held that any order rejecting the continuation of registration u/s 184(7) of the Act is appealable. We, therefore, in consonance with the two Division Bench decisions of this court, referred to above, hold that the Tribunal was correct in law in holding that the order passed u/s 184(7) of the Act by the Income Tax Officer was appealable. The reference is thus answered in favour of the assessee and against the Revenue. However, there will be no order as to costs.

4. Let a copy of this order be transmitted to the Assistant Registrar, Income Tax Appellate Tribunal, Patna, in terms of Section 260 of the Act.