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2005 (7) TMI 90 - HC - Income TaxGrant of registration u/s 185(1)(a) - genuineness of the firm - Cancellation of the order made by the CIT in exercise of the powers u/s 263 - erroneous and prejudicial Order - HELD THAT:- As can be seen from the order u/s 185(1)(a) of the Act extracted hereinbefore, the Assessing Officer has taken into consideration the fact that all the requisite formalities as laid down in the Act have been fulfilled by the firm, and it is further found that the firm was genuine. In the circumstances, at the highest, it would amount to taking one view from the material available on record, with which, the CIT does not agree and this by itself, as held by the apex court, cannot constitute a valid reason for exercise of jurisdiction u/s 263 of the Act. Therefore, both on facts and in law, it is not possible to hold that the impugned order of the Tribunal requires any interference. The Tribunal has rightly held that the CIT could not have exercised powers u/s 263 of the Act. In so far as question No.2 is concerned, the same proceeds on an incorrect presumption that the CIT has recorded a satisfaction to the effect that the registration was granted by the Assessing Officer without examining the genuineness of the firm. As already noticed hereinbefore, the Assessing Officer has categorically recorded that the firm was genuine and the Tribunal has found that from the material available on record such finding was rightly arrived at by the Assessing Officer after making proper investigation. In the result, both the questions are answered in the affirmative, i.e., in favour of the assessee and against the Revenue. The Tribunal was justified in cancelling the order made by the CIT u/s 263 of the Act. Reference stands disposed of accordingly with no order as to costs.
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