COMMISSIONER OF INCOME TAX Vs. KUMAR FINANCING CORPORATION

JUDGEMENT

(1.) In this reference for the three years, i.e., asst. yrs. 1959-60, 1960-61 and 1961-62, u/s 256(1) of the IT Act, 1961, the following questions have been referred to this Court :

(2.) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the ITOs orders u/s 154 r/w s. 186(3) of the IT Act, 1961 for the asst. yrs. 1959-60, 1960-61 and 1961-62 were not valid in law ?"

(3.) The Tribunal has held that the order of the ITO for cancellation of the registration u/s 186(1) of the New Act was not valid. The Tribunal was right in so holding. But the Tribunal observed that this could be sustained u/r 68 which would have been the follow-up action u/r 68 of the IT Rules, 1922. But the problem in this case is that u/s 297(2)(a) r/w IT (Removal of Difficulties) Order, 1962 cl. (2) - the proceedings for cancellation of the registration for these years must be governed by the old Act. But under the old Act u/s 35(5), in view of the dates in this case, the action would be barred by limitation. In that view of the matter, the adjudication of both these questions would become academic. The Tribunals finding must continue.