JUDGMENT
1. By this application under Section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as “the Act”), as it stood before the amendment of 1999, the applicant-Department seeks direction to the Income-tax Appellate Tribunal to refer the question, as stated in paragraph 8 of the application for answer by this court.
2. From the averments made in the application, it appears that a licence under the M. P. Excise Act, was granted in an, individual name. However, the licensee constituted a registered firm with some more persons and carried on business on the basis of the said licence. Later on, he applied for registration of the firm and continuation thereof. The assessing authority declined the prayer. However, in appeal, the Commissioner of Income-tax (Appeals), reversed the order of the assessing authority. The order of the Commissioner of Income-tax (Appeals) was affirmed in second appeal by the Tribunal. The Tribunal has also rejected the applicant’s prayer made under Section 256(1) of the Act.
3. The matter pertains to the assessment year 1986-87. The Tribunal has declined the applicant’s prayer mainly on the basis of the decision of this court in the same matter, pertaining to the previous assessment years. It is, however, submitted by Shri R. L. Jain, learned counsel for the applicant, that the order of this court is the subject matter before the Supreme Court. He also cited a Supreme Court decision in Bihari Lal Jaiswal v. CIT [1996] 217 ITR 746.
4. Having heard learned counsel for the parties and considered the decision in Bihari Lal’s case [1996] 217 ITR 746 (SC), we deem it proper to call for a reference from the Tribunal for resolution of the said question. Accordingly, we allow the application and direct the Income-tax Appellate Tribunal, Indore Bench, Indore, to refer the following question to be answered by this court:
“Whether, on the facts and in the circumstances of the case, the Tribunal was justified in directing to grant registration of the firm for the assessment years 1983-84 and 1984-85 and continuation of registration for the assessment years 1986-87 and 1987-88 ?”
5. Thus, the application stands disposed of, as aforesaid but with no order as to costs. A copy of this order be transmitted to the Tribunal with reference to its order dated May 13, 1997, passed in R. A. Nos. 32-33/Ind of 1997.
