TMI Blog2005 (7) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 categ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in terms of the provisions of section 185 of the Act. The Assessing Officer passed an order on November 17, 1983, granting registration to the assessee-firm in the following words: The assessee-firm according to the partnership deed comes into existence with effect from March 31, 1980. Form No. 11 along with partnership deed has been filed with the Income-tax Officer, Survey Circle, Ward-B. Formalities as laid down in the Act being found genuine registration is granted for the year under consideration. 3. The Commissioner of Income-tax (Investigation), Gujarat (hereinafter referred to as the CIT ), initiated action under section 263 of the Act by issuing show-cause notice on June 4, 1984. The assessee filed reply to the show-cause notice o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of Income-tax while initiating proceedings under section 263 of the Act. 5. The Tribunal has further found that the basis for initiation of proceedings under section 263 of the Act appeared to be the factum of a search conducted under section 132 of the Act at the premises of the firm and the partners. Finally, the Tribunal finds we find from the material already on record that the Income-tax Officer had, in fact, made proper investigation before granting registration under section 185(1)(a) of the Act . 6. It is this order which is assailed by the standing counsel for the Revenue, Ms. M. M. Bhatt. 7. It was submitted that the Commissioner of Income-tax was not satisfied with the answers given by the partners as could be seen from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annot be treated as an erroneous order also, unless the view taken by the Assessing Officer is unsustainable in law. 10. Applying the aforesaid tests to the facts found by the Tribunal it is not possible to agree with the contention raised by the Revenue. There is no infirmity in the order of the Tribunal, which would enable this court to interfere. As to whether a firm is genuine or not is primarily a question of fact. Similarly, as to what inference of facts should be drawn from the facts available on record would also be a question of fact. It is not even the case of the Revenue, as even the Commissioner of Income-tax does not state in his order under section 263 of the Act, that on the same set of evidence, the view adopted by the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts 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 Commissioner of Income-tax could not have exercised powers under section 263 of the Act. 13. In so far as question No.2 is concerned, the same proceeds on an incorrect presumption that the Commissioner of Income-tax 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 Office ..... X X X X Extracts X X X X X X X X Extracts X X X X
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