J. Kathuria, Accountant Member - (1.)THIS is an assessee's appeal directed against the order dated 6-3-1986, passed by the CIT, Meerut, under Section 263 of the Income-tax Act.
(2.)The facts of the case are these. For the assessment year 1981-82, the assessee's accounting period was from 1-7-79 to 30-9-80. The assessee firm was constituted under a partnership deed dated 1-7-76. The firm consisted of Smt. Prem Goel, Shri Girish Kumar and Shri Vipin Goel as partners. Shri Barun Kumar Adarsh was, however, admitted to the benefits of the partnership. The profits and losses were to be divided as under: -
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Shri Baran Kumar attained majority on 26-7-79. No fresh partnership deed was executed. The ITO treated the firm as registered firm without any discussion. While scrutinizing the assessment records, the CIT found that the assessee firm had been wrongly given the status of a registered firm. He, accordingly, issued a show-cause notice and after giving an opportunity of hearing to the assessee, held that the order of the ITO, treating the firm as registered firm for the assessment year 1981-82, was erroneous, inasmuch as, it was. prejudicial to the interests of Revenue. He, accordingly, directed the ITO to modify his order and treat the firm as URF. It is against this order of the CIT that the assessee has come in appeal before the Tribunal.

(3.)AT the time of hearing, Shri J.D. Singhal, the learned counsel for the assessee made two submissions. The first submission was that the learned CIT had not appreciated the Board's Circular No. 76/l/67-IT (AH dated 20/3/69). The second submission was that, in this very case, for the assessment year 1981-82, the CIT (Appeals) had already passed his order on 23/7/84 and in that view of the matter, the ITO's order had merged with that of the CIT(Appeals) and so the CIT could not invoke jurisdiction under Section 263 of the Income-tax Act.