9911796707
TMI Blog1982 (6) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... or the years under consideration. After the assessee's claim of registration for the two years under consideration was accepted by the ITO, the CIT treated the said two orders as erroneous insofar as prejudicial to the interest of the Revenue and, therefore, vide his order dt. 4th Dec., 1980 we set aside the two orders of the ITO to the extent of grant of registration in the first year and continuation of registration in the second year and made the following observation in that regard: "2. In response to this notice, Sh. S. N. Agrawal, advocate, attended on behalf of the assessee and under the letter dt. 4th Oct., 1980 claimed that the orders were not erroneous since application for registration in Form No. 11 for the asst. yr. 1976-77 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inserted subsequently. Not only this but what is more relevant before me is that when the ITO framed the assessment order dt. 13th Feb., 1979, he was well-aware of the investigation in r/o this disputed entry. The records indicate specifically that he was aware of the investigations going on r/o receipt of application for registration in Form No. 11. He even left on office-note to say that if a conclusion was arrived at that application for registration/partnership deed was filed after the end of the assessment year, registration would be cancelled. This would indicate without doubt that while granting registration under s. 185(1), the ITO failed to apply his mind to the facts of the case and failed to conclude whether the application for r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unable to lend any support to his finding. The receipt register is a Government record and even, for the sake of argument, if nothing has happened that dirty style as alleged by the CIT, we are afraid as to how the same could lend any support to the Revenue's case. On the other hand, even if assessment for the first year was made by the ITO, as per observation of the CIT, knowing well that the investigation regarding entries pertaining to receipt of registration application for the official register, it cannot lend any assistance to the Revenue's case. In case on the basis of high suspicion and presumption regarding treating of entries such as alleged by the CIT, is too weak a foundation for s. 263 proceedings which shall really be very unf ..... X X X X Extracts X X X X X X X X Extracts X X X X
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