BY THE COURT:

All these applications made by the Revenue under section 256(2) of the Income Tax Act (for short, 'the Act'), are disposed of by this common order.

2. It appears that assessee was granted registration for the assessment year 1983-84 by assessing officer vide order dated 22-8-1985. Thereafter assessing officer passed order under section 185(10) for the same assessment year and denied registration to the assessee on following grounds.

(i) Partners of the firm comprised of Shri Iqbal Singh, his wife, his daughter and four sons and one daughter-in-law;

(ii) Except as Iqbal Singh others do not have any independent source of income.

This order was valid for asst. yrs. 1984-85 and 1985-86.

3. Assessee took appeal against these orders and Commissioner (Appeals) by order dated 18-3-1995 ruled thus :

"If the assessing officer subsequently found that firm was not genuine then he should have cancelled the registration under section 186(1). If no action under section 186 is taken cancelling the registration, order passed under section 185(1)(b) cannot be held in accordance with law. Once the assessment has been framed under section 143(1), assessing officer could have assumed legiti