TMI Blog1962 (2) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... o be a partnership initially constituted under a deed dated July 16, 1948. The firm was granted registration under section 26A of the Act for the year 1950-51. The registration was renewed for the years 1951-52, 1952-53 and 1953-54. It was, however, refused for the year I954-55- The petitioner filed successive appeals against that order and ultimately the Tribunal, by its order dated October 29, 1960, granted registration for the year 1953-54. on the meantime the Income-tax Officer had issued notice to the petitioner to show cause why the renewal of its registration for the year 1953-54 should not be cancelled on the ground that no genuine firm then existed. After hearing the petitioner, that officer, by his order dated March 6, 1959, cance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion under section 23(4) is in the nature of a penalty and the penalty can be imposed against a firm if it is guilty of any of the defaults mentioned in the said sub-section. It would be noticed that where registration is cancelled under section 23(4), there is no doubt that the application for registration had been properly granted. The basis of an order under section 23(4) is not that the firm which had been registered was a fictitious one, but that, though the registered firm was genuine, by its failure to comply with the requirements of law, it had incurred the penalty of having its registration cancelled. That is the effect of the provisions of section 23(4). On the other hand, rule 6B deals with cases where the Income-tax Officer is s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of cancellation under rule 6B has to be treated as one passed under section 26A of the Act, it must also be construed as amounting to refusal and so appealable under section 30(1) of the Act. Section 26A itself does not specify the orders that may be passed thereunder. Applications made under the section are to be dealt with by the Income-tax Officer in such manner as may be prescribed . The rules made prescribed the orders that may be passed under the section. Only one of these orders, namely, refusal to register a firm under section 26A, is appealable under section 30(1) of the Act. Since only this order, and no other order, under section 26A, is appealable, any other order under the section cannot be constructively regarded as appe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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