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Issues Involved:
1. Maintainability of Composite Appeals: Whether composite appeals covering objections against the quantum of assessment and refusal to grant/renew registration are tenable. Summary of Judgment: Maintainability of Composite Appeals: The central issue in this case was whether composite appeals filed by the assessees, M/s. J. K. Shah & Co. and M/s. Hansa Agencies, covering objections against the quantum of assessment and refusal to grant/renew registration, are tenable. 1. Facts and Background: - The ITO completed the assessment for M/s. J. K. Shah & Co. for the assessment year 1962-63, determining its total income and refusing to renew the firm's registration. - The assessee filed a composite appeal to the AAC against both the assessment order and the refusal of registration. - The AAC held that a common appeal was not maintainable and required the assessee to elect which order to contest. The assessee chose to contest the order under s. 185 regarding registration, which the AAC upheld. 2. Tribunal's Decision: - The Tribunal accepted the assessee's submission that a composite appeal was permissible and directed the AAC to hear the objections regarding the computation of income. - The Tribunal noted that even if it had found the composite appeal untenable, it would have allowed the assessee to file separate appeals and condoned any delay. 3. Statutory Provisions: - The right of appeal to the AAC against various ITO orders is provided under s. 246 of the I.T. Act, 1961. - Section 249 deals with the form of appeal and limitation, requiring appeals to be in the prescribed form and verified in the prescribed manner. - Form No. 35, prescribed under r. 45 of the I.T. Rules, 1962, is used for appeals under s. 246. 4. Arguments and Precedents: - The Commissioner argued that separate appeals were required for orders made under different sections of the I.T. Act, 1961, citing the Supreme Court decision in CIT v. Amritlal Bhogilal & Co. and the Calcutta High Court decision in Fuel Supply Co. v. CIT. - The Tribunal emphasized that questions relevant to the registration of firms form an integral part of the assessment process and that a composite appeal is a common practice for convenience and justice. 5. Court's Analysis: - The court noted that the I.T. Act, 1961, and the I.T. Rules, 1962, do not explicitly require separate appeals for different orders. - The court agreed with the Tribunal that the assessment and registration issues are closely interconnected and that a composite appeal is permissible. - The court distinguished the current case from the position under the Indian I.T. Act, 1922, and the Rules framed thereunder, noting the changes in the 1962 Act and Rules. 6. Conclusion: - The court concluded that composite appeals were tenable and upheld the Tribunal's decision. - The Commissioner was directed to pay the costs of the reference to the assessee. In summary, the High Court held that composite appeals covering objections against both the quantum of assessment and refusal to grant/renew registration are tenable under the I.T. Act, 1961, and the I.T. Rules, 1962.
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