TMI Blog1984 (11) TMI 120X X X X Extracts X X X X X X X X Extracts X X X X ..... cation for registration in From No. 11, registration was granted. Subsequently, in the light of Punjab and Haryana High Court decision in the case of CIT vs. M/s Harjit Singh Pal Chand Co. (1979) 8 CTR (P H) 365 : (1979) 120 ITR 289 (P H), registration came to the cancelled under s. 186 by the ITO. 3. The AAC confirmed the action of the ITO because, according to him, the registration cancellation was as per the Punjab Haryana High Court judgment. Both the lower authorities relied on the said Punjab and Haryana High Court judgment. It is the said action of the AAC which is disputed by the assessee. 4. The ld. counsel for the assessee first of all submitted that as per earlier decision of this Bench in the case of Jagdish Rai, Monga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en frequent war of words and sometime long ones regarding the issue of registration in cases of wine dealers who contravened the rules of Punjab Liquor Act. One of the most speaking orders on the issue passed by the Bench is in Jagdish Rai Monga reported in which all aspects and case law stand discussed including the earlier decision of this Bench in the case of M/s Chuni Lal Co. Rajkot, which was decided in favour of the Revenue due to distinction in facts. If we go as per finding of this Bench in the said decision of Jagdish Rai Monga, registration claim of the assessee could be placed in jeopardy because though the licence was in the name of one name but the sales were conducted by non-licensee partners and this could be fatal in asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erred to the said case also while coming to the conclusion that s. 186 of the Act no doubt provides for cancellation of registration; but this circumstance is certainly not sufficient to hold that the ITO should act under this section alone and has no right to deny the benefit of s. 184(7) of the Act when once a firm has been registered even if it should subsequently transpire that it was not entitled to be registered, not being a firm in the eyes of law the cancellation is only one of the several methods by means of which action could be taken against erring firms. This apart s. 186 can be called in aid if only the ITO is satisfied that there was during the previous year, no genuine firm as opposed to a sham or bogus firm, in existence as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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