- (1.) THIS is a reference under s. 256(2) of the IT Act, 1961.
(2.) HEARD Sri A.N. Mahajan, learned counsel for the Department. 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 granting registration to the assessee-firm." The relevant assessment years with which we are concerned are the asst. yrs. 1972-73 and 1973-74. As regard the asst. yr. 1971-72 the application for registration of the firm was rejected on the ground that there was no genuine firm in existence, because one Smt. Vimla Devi who was shown to be one of the two partners in the firm, was held to be bogus partner. However, in the relevant assessment year with which we are concerned the Tribunal has considered the case afresh which was not available earlier and held that Smt. Vimla Devi was not bogus partner and the firm is genuine. This is a finding of fact. Hence we answer the question, referred to above in the affirmative i.e., in favour of the assessee and against the Department.;