Sreedharan, J.

These references have come before us pursuant to an order of reference dt. 30.9.1993 passed by a Division Bench. The Bench doubted the correctness of an earlier Bench decision of this Court in C.I.T. v. Union Tobacco Co., (1961) 411. T. R.115 =1960 KLT 122. According to the Bench, in view of the later pronouncement of the Supreme Court, viz., Jer & Co. v. C.I.T., (1971) 79 I.T.R.546, the decision of this Court in (1961) 411. T. R 115 = I960 KLT 122 requires a second look as to whether it laid down good law.

2. I.T.R. No. 61 is a reference made by the Income tax Appellate Tribunal, Cochin Bench, at the instance of M/s. Narayanan & Co., an assessee under the Income tax Act, in relation to the assessment year 1981-82. I. T. R. Nos. 62 to 64 of 1991 are references made by the Tribunal at the instance of M/s. K. S. Ramakrishnan, P. K. Narayanan & Co. The assessment years concerned in these I. T. Rs. are 1980-81 to 1982-83. Common questions of law arise for consideration in these references.

The questions referred are:

1. "Whether, on the tacts and in the circumstances of the case, the firm was entitled to registration under S.185 (1) (a) of the Income tax Act, 196