| Case ID |
f4bf005b-4e9e-4eb9-82be-a6dd3285c5a2 |
| Body |
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| Case Number |
Income-tax Reference No.340 of 1983 |
| Decision Date |
Dec 09, 1996 |
| Hearing Date |
|
| Decision |
The Income-tax Officer had recorded that during the previous year a genuine firm was in existence. The cancellation of registration by the Commissioner was found to be erroneous. The tribunal upheld the decision of the Income-tax Officer, stating that the only ground for cancellation of registration is if no genuine firm was in existence during the relevant assessment year. The ruling clarified that the allocation of profits among partners does not affect the genuineness of the firm for registration purposes. Therefore, the registration of the firm could not be cancelled in law. |
| Summary |
In the case of Ravindra Industries vs. Commissioner of Income Tax, the Gujarat High Court addressed the issue of the cancellation of registration of a firm under the Income Tax Act, 1961. The case revolved around the procedural compliance for the registration of the firm and the interpretation of sections 184 to 187 of the Income Tax Act. The court noted that the primary consideration for registration is whether the firm is genuine and existed during the previous year. The court ruled that the Income-tax Officer's finding that a genuine firm existed was not erroneous and that the subsequent allocation of profits did not invalidate the registration. This ruling is significant for firms seeking registration under the Income Tax Act, emphasizing the importance of the firm's genuineness over the allocation of profits among partners. The decision reinforces the principle that procedural compliance is crucial, but the substance of the firm's existence takes precedence in matters of registration cancellation. |
| Court |
Gujarat High Court
|
| Entities Involved |
Not available
|
| Judges |
R. K. Abichandani,
Rajesh Balia
|
| Lawyers |
D.A. Mehta,
R.K. Patel,
B.D. Karia,
K.C. Patel,
M.J. Thakore,
Manish R. Bhatt
|
| Petitioners |
Ravindra Industries
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1999 SLD 42,
1999 PTD 305,
(1997) 225 ITR 1040
|
| Other Citations |
CIT v. Ashokbhai Chimanbhai (1965) 56 ITR 42 (SC)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
184,
185,
186,
187
|