TMI Blog1979 (3) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... ended that the application for continuation of registration was filed with in time as ascertained from the previous auditors who were handling the case. The assessee also objected to the disallowance made in record to puja, entertainment, travelling and conveyance expenses. 2. On appeal, the AAC observed that the at the time of hearing the assessee confined its arguments only about the question of granting of continuation of registration. The AAC then considered the assessee's representative's submission that the application for continuation of registration on Form No. 12 was filed even on 2nd May, 1974. He held that no material was produced before him in support of the submission. He also observed that the issue regarding refusal of cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... following rulings in support of his submissions: (i) Addl. CIT vs. Chekka Ayyana and others. (ii) Decision of the Allahabad High Court in ITO vs. Vinod Krishna Son Prakash, I.T. Ref No. 161 of 1976, decided on 23rd Aug., 1978, an extract of which is found in "Taxman" Nov. 1978 at pages 87 and 88. 4. The learned departmental representative on the other hand, vehemently submitted that the AAC is correct in holding that no appeal lay against the order of the ITO refusing continuation of registration. She pointed out that ruling of the Madras High Court in 96 ITR 711 clearly supported the department's stand. She further referred to the ruling of the Calcutta High Court in Sundersons and Morgans vs. ITO and others, and the observations at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter, dt. 24th March, 1977, the assessee had explained that the assessee's accounts were audited previously by M/s vs. Tirumalai Co., Charted Accountants, that only two months after the lapse of the accounting year, it had appointed the present auditors to finalise the accounts and represent its case. This was followed by another letter, dt. 30th March, 1977. The ITO in the assessment order has referred only to the letter, dt. 30th March, 1977, and stated that the explanation offered by the assessee would not constitute sufficient reason preventing it from furnishing a declaration under s. 184 (7) within the time prescribed under the Act. From the records it is seen that the assessee had filed an application under s. 154, dt. 29th April, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the AAC for fresh disposal after examining M/s Tirumalai Co., in support of the assessee's plea that the application Form No.12 was in fact filed within time as contended. 6. The learned departmental representative very vehemently contended that the appeal before the AAC itself was incompetent and, therefore, the matter cannot go back to his file. She heartily relied upon the ruling of the Madras High Court reported in 96 ITR 711 in support of her submission. The above ruling of the Madras High Court was rendered with reference to the law in force for the asst. yr. 1964-65. Further, the ITO in that case had passed an order purported to be under s. 185 which the High Court construed to be an order under s. 184(4) of the Act. The abov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an unregistered firm. Reading the above Expln. (2) to s. 143 with s. 246(c), it is clear that the assessee is entitled to agitate before the AAC the question of status, viz., its classification as registered firm or unregistered firm under which it is assessed. We, have therefore, no hesitation in holding that the appeal before the AAC questioning the status of the assessee as unregistered firm, is appealable. We are supported in our opinion by the decision of the Andhra Pradesh High Court in the case reported in 106 ITR 313 wherein the High Court has followed the Gujarat High Court decision in CIT vs. Dineshchandra Industries (5), and that of the Supreme Court in Hukumchand Mannalal Co. vs. CIT (6). The Allahabad High Court in its judg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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