Judgement

SUBBA RAO, J. : This appeal, on a certificate granted by the Madhya Pradesh High Court, raises the question whether an appeal lies under S. 30 (1) of the Indian Income-tax Act, 1922, hereinafter called the Act, to the Appellate Assistant Commissioner against the order of an Income-tax Officer cancelling an order granting registration of a firm under S. 26-A of the Act.

2. The fact material for the said question may be briefly stated. The appellant is a firm constituted under a deed of partnership dated July 16, 1948. The Income-tax Officer registered the said firm under S. 26-A of the Act for the year 1950-51. The registration was renewed for the years 1951-52 and 1952-53. On November 30, 1957, the Income-tax Officer renewed the registration for the assessment year 1953-54. On March 6, 1959, on ground that the firm was not a genuine one, the said officer cancelled the registration under R. 6-B of the Income-tax Rules. The appellant preferred an appeal against that order to the Appellate Assistant Commissioner, Indore. On July 15, 1959, the said Appellate Assistant Commissioner rejected the appeal or the reason that no appeal lay against the order of the Income-tax Officer cancelling the registration. The appeal filed by the appellant against that order to the Income-tax Appellate Tribunal, Bombay, was dismissed. At the instance of the appellant, the following question was referred to the High Court under S. 66 (1) of the Act:

"Whether on the facts and circumstances of the case, the order passed by the Income-tax Officer under R. 6-A of the Indian Income-tax Rules cancelling the certificate of renewal of registration granted to the assessee is appealable under S. 30 of the Income-tax Act."

A Division Bench of the High Court of Madhya Pradesh answered the reference against the appellant. It held that no appeal lay under S. 30 of the Act against the order of the Income-tax Officer cancelling registration to the Appellate Assistant Commissioner. Hence the appeal.

3. The only question in this appeal is, whether an order cancelling the certificate of renewal of registration made under S. 26-A of the Act by an Income-tax Officer is subject to an appeal under S. 30 (1) to the Appellate Assistant Commissioner. At the outset, the relevant provisions may be usefully read:

Section 26-A. (1) Application may be made to the Income-tax Officer on behalf of any firm, constituted under an instrument of partnership specifying the individual shares of the partners, for registration for the purposes of this Act and of any other enactment for the time being in force relating to income-tax or super-tax.

(2) The application shall be made by such person or persons, and at such times and shall contain such particulars and shall be in such form, and be verified in such manner, as may be prescribed; and it shall be dealt with by the Income-tax Officer in such manner as may be prescribed.

Rule 6. Any firm to whom a certificate of registration has been granted under R. 4 may apply to the Income-tax Officer to have the certificate of registration renewed for a subsequent year.

Rule 6-A. On receipt of an application under R. 6 the Income-tax Officer may, if he is satisfied that the application is in order and that there is or was a firm in existence constituted as shown in the Instrument of Partnership, grant to the assessee a certificate signed and dated by him in the following form:

xx xx xx xx xx

Rule 6-B. In the event of the Income-tax Officer being satisfied that the certificate granted under R. 4, or under R. 6-A, has been obtained without there being a genuine firm in existence, he may cancel the certificate so granted.

Section 30 (1). Any assessee ............ objecting to the cancellation by an Income-tax Officer of the registration of a firm under sub-section (4) of S. 23 or to a refusal to register a firm under sub-section (4) of S. 23 or S. 26-A ....... may appeal to the Appellate Assistant Commissioner against the assessment or against such refus