Commissioner of Income Tax.
An application for grant of registration to the said firm under Sections 184 and 185 of the Act was filed in Formell.
The High Court rejected the applications on the ground that the question sought to be raised by the assessee was companycluded against it by two decisions of that Court, viz.,
Biharilal Jaiswal entered into a Partnership with ten other persons to companyduct the business under the said licence.
The income Tax Officer rejected the application for registration on the ground that the partnership having been formed in violation of clause VI of the General Licence Conditions Prescribed by the Madhya Pradesh Excise Rules is illegal and cannot, therefore, claim registration under the Income Tax Act.
Madhya Pradesh v. Sheonarayan Harnarayan 1973 Tax Law Reporter 1186 1975 100 T.R.213 and Commissioner of Income Tax, Madhya Pradesh v. Pagoda Hotel and Restaurant 1974 93 I.T.R.2710.
On appeal, the Appellate Assistant Commissioner directed the Income Tax Officer to grant registration as prayed for, against which order the Revenue appealed to the Tribunal.
The partnership is evidenced by the deed dated August 30, 1968.
A licence for retail sale of companyntry spirit under supply system in form C.S.No.3 of the Madhya Pradesh Excise Rules, 1960 was obtained by Biharilal Jaiswal in respect of twenty two out stall shops in Tehsil Sarangarh, District Raigarh in the public auction held in January, 1968.
The licence was effective for the period companymencing on April 1, 1968 and ending with March 31, 1969.
The assessee had requested the High Court to direct the Tribunal to state the following question of law for its opinion Whether on the facts and in the circumstances of the case, the applicant companyld be refused registration under section 185 of the Income tax Act, 1961 on the ground that its companystitution was illegal for breach of the provisions of clause VI of the General Licence Conditions made under the Excise Rules, although numberaction was taken by the Collector for cancellation of the licence under clause 14 of the Licence in Form C.S.3, inspite of written intimation, dated 27.4.1967 about its companystitution.
P. JEEVAN REDDY,J. These appeals are preferred against the judgment and order of the Madhya Pradesh High Court rejecting the applications filed by the assesside under Section 256 2 of the Income Tax Act, 1961.
