Patna H.C : Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the AAC can entertain an appeal under s. 246(c) of the IT Act, 1961, relating to the asst. yr. 1971-72 ?

Counsel Appeared

B.P. Rajgarhia & S.K. Sharan, for the Revenue : G.C. Bharuka, Navniti Prasad Singh, Ramesh Kumar Agarwal & Satyadarshi Sanjay, for the Assessee

BY THE COURT :

The moot point fallen for consideration in this reference under s. 256(1) of the IT Act, 1961 (hereinafter to be referred to as ” the Act “), is whether the order refusing continuation of registration is appealable or not. In that background, in relation to the asst. yr. 1971-72, the following question has been referred to us for our opinion:

” Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the AAC can entertain an appeal under s. 246(c) of the IT Act, 1961, relating to the asst. yr. 1971-72 ? “

2. In our view, the law has now been settled by a series of decisions of this Court holding that an order of the ITO refusing continuation of registration is appealable in terms of s. 246(c) of the Act. That was the view taken in the cases of Madhur Jalpan vs. CIT (1983) 143 ITR 351 (Pat) and CIT vs. Manuram Babulal (1986) 53 CTR (Pat) 272 : (1986) 158 ITR 5 (Pat). There are other decisions also to the same effect. It is not necessary to state all of them. So far as this Court is concerned, the law is settled that such an order as mentioned in the reference is appealable.

In that view of the matter, the question referred to us is answered in the affirmative, in favour of the assessee and against the Revenue. In the special circumstance, however, there will be no order as to costs.

Let a copy of the order be transmitted to the Assistant Registrar, Tribunal, Patna, in terms of s. 260 of the Act.

[Citation : 171 ITR 296]