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, under S. 256 (1) of the IT Act, 1961, the following questions have been referred to this Court :

(2.) IT appears that the registration of the firm was granted to the assessee for the asst. yr. 1959-60 on or about 5th Aug., 1961 under S. 26A of the Indian IT Act, 1922 and renewal of registration was granted for the asst. yr. 1960-61 on 5th Aug., 1961 and for the asst. yr. 1961-62 on 4th Nov., 1961. The assessments for all these three years were completed under S. 23(3) of the IT Act, 1922.

(3.) THE Tribunal has held that the order of the ITO for cancellation of the registration under 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 under r. 68 which would have been the follow-up action under r. 68 of the IT Rules, 1922. But the problem in this case is that under 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 under 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 Tribunal's finding must continue.