| Case ID |
261e7934-0ccf-44c5-a70c-a4a4acce1bf2 |
| Body |
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| Case Number |
D.B. IT CASE No. 26 OF 1985 |
| Decision Date |
Apr 15, 1985 |
| Hearing Date |
|
| Decision |
The court held that once registration has been granted or continued under section 184(7) of the Income-tax Act, there cannot be a refusal to register the firm under section 185(5) for the same assessment year. The ITO's order to withdraw the continuation of registration based on non-disclosure of income was not valid as it did not fall under the prescribed grounds for cancellation under section 186(1). The Tribunal's decision to uphold the Commissioner (Appeals)' ruling was justified, as there was no substantial question of law arising from the case, and it was presumed that undisclosed income would be distributed among partners as per the partnership deed. Thus, the appeal was dismissed. |
| Summary |
This case revolves around the interpretation of sections of the Income-tax Act, 1961 related to the registration of firms and the distribution of income among partners. The Rajasthan High Court examined the implications of sections 184(7), 185(5), and 186(1) concerning the continuation of a firm's registration after it had already been granted. The court emphasized that once a firm is registered, it cannot be refused registration for the same assessment year based on income non-disclosure. Additionally, it was established that any undisclosed income should be divided among partners in accordance with the partnership agreement. The decision reinforces the principles of firm registration and income computation under tax laws, making it a significant reference for future cases involving similar legal questions. |
| Court |
Rajasthan High Court
|
| Entities Involved |
Not available
|
| Judges |
Dwarka Prasad,
S.S. Byas
|
| Lawyers |
J.P. Joshi
|
| Petitioners |
Not available
|
| Respondents |
Swaroop Chand Kojuram Barmer
|
| Citations |
1985 SLD 1147,
(1985) 154 ITR 660
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
184(7),
186(1),
67,
256,
185(5)
|